The cryptocurrency sector is recently attracting attention from the US authorities. On the 9th of October 2020, a report from the US justice department said it aims to deal with upcoming threats and crypto enforcement challenges facing digital currencies. The department of justice also reported the Cryptocurrency Enforcement Network’s establishment to mitigate cryptocurrencies’ risks.
In the DOJ’s recent report, the US Attorney General, William Barr, pointed out that he understands that crypto could significantly transform how the world runs financially. However, ensuring that crypto technology is safe and does not jeopardize national security is equally fundamental.
Christopher Wray, FBI Director, on the other hand, added that his agents observed the risks of cryptocurrency’s criminal usage firsthand. Wray admitted that criminals are using crypto technology to prevent the authorities from tracing their ill-gotten funds. These criminals also use crypto to trade in illicit goods, including criminal tools on the dark web.
Another way criminals are using cryptocurrency by taking advantage of its anonymous nature and demanding ransom payments from businesses and individuals. They especially demand ransom from victims of malware attacks.
The Framework for Crypto Enforcement
The DOJ’s Cyber-Digital Task Force addressed how to deal with crypto problems in the 71-page report. One way it outlined is by providing education and outreach on cryptocurrency threats.
The DOJ also called for cooperation between the public and private sectors. This cooperation includes engagement with banks, financial institutions, and the entire community of crypto users.
All stakeholders, including private industry, regulators, elected officials, and individual crypto users, need to take steps to ensure crypto is not used as a platform for illegal purposes. The collaboration will promote public safety, as well as safeguarding national security.
Threats Facing Cryptocurrency Sector
One drawback facing cryptocurrency is that unlike credit card transactions, crypto payments are almost immediately irreversible. The scammers are, therefore, attracted to using cryptos in their illicit activities by this crypto trait. And this is because scammers avoid credit card chargebacks.
Another issue affecting the crypto sector is that digital currencies are not widely accepted as a means of consumer payment. Its usage day-to-day pales compared to its popularity as a speculative investment or as a tool for criminals. The new crypto enforcement network will create a better path for safety as legitimate crypto users continue in their activities.
The outreach and education on cryptocurrency and its threats will change the perspective that digital currencies are for scammers. According to the US justice department, cryptocurrency awareness will also increase crypto adoption and enhance a suitable environment for crypto users.