US Senator Elizabeth Warren is once again calling for a crackdown on cryptocurrencies, amid a new government report suggesting some countries are using digital assets to avoid sanctions.
Warren (D-Massachusetts), a longtime crypto critic, tells its 6.8 million followers on the social media platform X, according to a US Governmental Accountability Office (USGAO). shows why her bill to tackle digital assets is necessary.
“A new USGAO report confirms that rogue states are using crypto to circumvent sanctions and undermine our national security. It’s time for crypto to follow the same anti-money laundering rules as everyone else. I have a bill to make it happen.”
One of the report’s findings is that since crypto transactions are recorded on a public ledger, law enforcement can have an advantage in tracking down sanctions violators.
“Digital assets such as Bitcoin and other virtual currencies pose risks to implementing and enforcing US sanctions, but several factors partially mitigate these risks. A key feature of digital assets is that they allow users to quickly transfer value across national borders.
Yet many digital assets are recorded on a public ledger, allowing US agencies and analytics firms to trace transactions and identify potentially illegal actors. However, digital asset owners may also use the anonymizing features of some digital assets or other techniques that obscure their identities in an attempt to evade sanctions.”
The report also finds that implementing “global anti-money laundering standards” on cryptocurrencies could help prevent digital assets from being used to circumvent sanctions.
Warren’s X-post received one community note drawing attention to a 2022 U.S. Treasury Department National Money Laundering Risk Assessment report, which states that “fiat is the currency of choice for financial crimes.”
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Featured image: Shutterstock/Yurchanka Siarhei/Natalia Siiatovskaia