Janet Yellen, the first minister of finance to the Biden government, declared that he would not use cryptocurrency for illegal purposes such as money laundering.
Janet Yellen expressed strong concern about the negative uses of cryptocurrency at a confirmation hearing held at the Senate Financial Committee on the 19th (local time), Astechnica reported on the 21st.
At the hearing that day, Rep. Maggie Hassan (Democratic Party) asked Treasury Secretary Yellen about the use of cryptocurrencies by terrorists and other criminals.
Then Yelan responded, “I think that many people are using cryptocurrency mainly for illegal financial purposes,” and “I want to study ways to reduce such use.”
He emphasized that he plans to prevent money laundering through the blockchain network through this method.
Trump administration also submitted money laundering sanctions bill
Blockchain-based financial networks are becoming attractive to criminals. Unlike conventional financial networks, it does not require identification.
In particular, it is difficult for the government to obey the money laundering laws because certain individuals or organizations cannot control the blockchain network, Astechnica said.
To overcome this situation, US financial authorities are focusing on regulating Bitcoin exchanges. This is because if you are asked to present your ID when trading Bitcoin, you can easily track subsequent transactions.
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In December of last year, during the Trump administration, the Financial Crimes Enforcement Network (FinCEN) under the Ministry of Finance proposed a new law that more stringently regulates money laundering using cryptocurrencies.
According to the new law, cryptocurrency exchanges are required to submit a transaction report to FinCEN when trading cryptocurrencies over $10,000.