U.S. Justice Department to tighten oversight of Bitcoin exchanges

The U.S. Department of Justice will take ‘tough measures’ against illicit activity on cryptocurrency trading platforms. This was reported by the Financial Times.

In Yen Choi, head of the National Coalition for Digital Assets (NCET), said that the agency’s targets are exchanges that allow criminals ‘to profit easily from their crimes and launder money’.

Choi added that NCET’s focus is on companies that circumvent KYC/AML rules or do not participate in thorough compliance and risk reduction. According to her, the number of crypto crimes over the past four years has risen ‘significantly’.

“We hope that, by focusing on these types of platforms, the agency will achieve a multifaceted effect,” she added.

The department will also take further steps to combat investment fraud. FBI estimates show that the amount of funds lost to criminal schemes rose from about $900 million in 2021 to $2.5 billion in 2022.

In May, the U.S. Department of Justice began an investigation into the parent company Binance Holdings Ltd. over possible sanctions violations against Russia. The company had previously repeatedly stated that it fully complied with all U.S. and other international restrictions.

Earlier in April Web3-lawyer Jess Haines said, that the U.S. Securities and Exchange Commission would tighten regulation of digital assets even further. In his view, such measures are necessary to protect investors.