A member of the US Commodity Futures Trading Commission (CFTC) is reportedly calling for an end to anonymous crypto transactions to curb illegal activity.
According to a new report from Reuters, CFTC Commissioner Christy Goldsmith Romero says tighter government and industry controls on digital assets are needed to contain risks to national security.
During remarks at a City Week conference in London, Romero said criminals are using crypto to fund cybercrime.
says Romero,
“Fraud is a hallmark of digital asset markets, the human toll of which may be overlooked. It is essential for governments and especially the industry to address what makes crypto so attractive for illicit financing, and that is the appeal of anonymity.”
Reuters notes how, citing national security concerns, the US recently banned the currency mixer Tornado Cash, which pools funds from different sources, mixes them up and then redistributes them to increase anonymity.
The US Congress is considering new laws to address anonymity in digital assets, according to Reuters.
says Romero,
“It is possible for all crypto companies to move away from mixers and anonymity-enhancing technology, while still providing financial privacy to their clients.”
The Financial Stability Board (FSB) is also working on final global recommendations for crypto regulations, which Reuters says will be released “soon.”
The old financial system continues to lead the way when it comes to money laundering. More than a trillion dollars are illegally funneled through the traditional banking system every 365 days, according to a report by the United Nations Office on Drugs and Crime.
A recent analysis by Forbes found that banking giants including Capital One and Deutsche Bank have been fined a total of $2.7 billion in 2021 for committing money laundering violations. As for the crypto industry, a January report from Chainalysis found that money laundering will account for less than one percent of all crypto transactions by 2021.
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