US Treasury seeks comments on the role of cryptocurrencies in illicit activity

The U.S. Treasury Department has invited public comments on the role of digital assets in illicit activity and the department’s response to the issue.

The document contains more than 20 questions. In particular, respondents are asked to assess whether the Treasury has comprehensively defined the risks of illicit financing associated with cryptocurrencies.

The department also asked what additional steps authorities should take to more effectively combat criminals’ use of digital assets. The public may indicate whether there are regulatory acts that are ill-suited for regulating the industry.

“The growing use of digital assets in financial activity increases the risk of crimes such as money laundering, financing of terrorism and proliferation of weapons of mass destruction, fraud and theft,” the statement said.

In the Treasury’s view, this underscores the need for ongoing oversight of cryptocurrency use.

Comments are due by November 3, 2022.

On Friday, September 16, the White House outlined a framework for regulating the cryptocurrency industry. The document provides for a range of initiatives, including amendments to the Bank Secrecy Act that would tighten enforcement against providers of services related to digital assets.

Earlier, President Joe Biden issued an executive order directing federal agencies to coordinate oversight of the industry.

In July the Treasury Department requested public comments on the potential benefits and risks associated with cryptocurrencies.

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