Eun Young Choi, the head of the National Cryptocurrency Enforcement Team at the United States Department of Justice (DOJ), is introducing new measures targeting cryptocurrency mixers and exchanges to combat the widespread use of cryptocurrencies in unlawful operations. Choi, the team’s director since last year, wants to reduce the occurrence of crypto-related crimes in the business.
The National Cryptocurrency Enforcement Team’s emphasis extends beyond simply enforcing rules on exchanges; it also intends to crack down on crypto mixers and tumblers, which have long been a concern for authorities. Criminals have used these services to conceal the traceability of funds, aiding money laundering. The DOJ has already taken action against such practices, recognizing their negative consequences.
Choi underscored the platforms’ culpability in assisting criminal actors, saying, “But on top of that, they’re allowing all the other criminal actors to easily profit from their crimes and cash out in ways that are problematic to us.” We’re hoping that by focusing on those types of platforms, we’ll have a multiplier effect.
The DOJ’s latest actions are one aspect of its growing efforts to control the crypto business. The government has investigated Binance, a popular cryptocurrency exchange, on suspicion of violating Russian sanctions. The DOJ is looking into potential vulnerabilities that may have allowed Russian users to get access to the platform.
Furthermore, the DOJ has successfully confiscated cash on multiple instances, including an April takedown on a pig butchering scheme that resulted in the seizure of $112 million in cryptocurrency and other assets. Furthermore, the DOJ is actively examining cryptocurrency lender Silvergate Bank.
Recognizing the need for more thorough crypto regulation, the US is preparing to implement significant regulatory measures. Congress recently convened a crypto regulatory hearing, presenting a comprehensive view of how the industry might be handled. President Biden’s proposed DAME tax on cryptocurrency mining, aimed at minimizing the environmental impact of mining, is one prominent measure in this area. These actions and increased industry oversight are consistent with Biden’s commitment to fostering the safe and responsible development of cryptocurrencies.
The United States is advancing toward constructing a safer and more regulated crypto ecosystem, thanks to the DOJ’s increased actions against bitcoin mixers, exchanges, and other criminal activity. These steps demonstrate the government’s willingness to protect the financial system and prevent illicit cryptocurrency use.
