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US Department of Justice urges president Biden to close regulatory gaps and strengthen international cooperation

US Department of Justice urges president Biden to close regulatory gaps and strengthen international cooperation

The office of the Attorney General of Washington DC, has urged President Biden to strengthen regulation of the crypto industry, in a joint report In response to the recent Executive Order on Ensuring Responsible Development of Digital Assets

The report outlines the steps the Department of Justice and law enforcement and regulatory partners have taken to combat the illicit use of digital assets, with Attorney General Merrick B. Garland noting:

“Strong international law enforcement cooperation will be essential to best position the United States and its partners to detect, investigate, prosecute, and otherwise disrupt criminal activity related to digital assets, and to overcome the unique obstacles posed by the features of these technologies to law enforcement efforts to combat their misuse”

Biden’s executive order is the first coordination of a strategy on digital assets in the US, and brings together various financial agencies including the Treasury and the Commerce Department, and will require government agencies to take cryptocurrencies seriously.

The recent report is a response to Section 8(b)(iv) of the Executive Order which directed the Attorney General to submit a report on how to strengthen international law enforcement cooperation for “detecting, investigating, and prosecuting criminal activity related to digital assets”.

One of the challenges highlighted by the report is the criminal misuse of digital assets, with the report noting: 

“The perceived pseudonymity of cryptocurrencies makes them attractive vehicles for money laundering and other criminal exploits, and their widespread promotion as investment vehicles has led to opportunities for criminals to target consumers and retail investors—particularly those who seek to profit from investing in this emerging financial ecosystem, but are unfamiliar with the technology and the attendant risks of the market.”

Ultimately, the report  recommends stronger international cooperation, information sharing, and the closing of regulatory gaps across jurisdictions. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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