Undersecretary of the U.S. Treasury’s Office of Terrorism and Financial Intelligence, Sigal Mandelker, called for stronger cryopto regulation in an effort to help protect the financial system and national security.
Citing Venezuela’s recent “petro” cryptocurrency as an example, Mandelker told the Securities Industry and Financial Markets Association Anti-Money Laundering and Financial Crimes Conference that rogue groups and terrorists use cryptocurrencies to “exploit the financial system, hide their ill-gotten gains, [and] finance their illicit activities.”
Mandleker continued to say that there is a lack of international regulation of cryptocurrency providers with regard to anti-money laundering and combatting the financing of terrorism, which is an ever growing problem.
She told the conference:
“The lack of AML/CFT regulation of virtual currency providers worldwide greatly exacerbates virtual currency’s illicit financing risks. Currently, we are one of the only major countries in the world, along with Japan and Australia, that regulate these activities for AML/CFT purposes. But we need many more countries to follow suit, and have made this a priority in our international outreach.”
While it’s easy to call for global regulation of cryptocurrency markets, developing a regulation plan and ultimately implementing it has poroven difficult.