In October, the US Department of Justice (DOJ) announced the creation of a dedicated unit, the National Cryptocurrency Compliance Team, or NCET, to prosecute criminal misuse of digital assets and cryptocurrency infrastructure, and track and trace. Illegal cryptocurrency.
The measure continues to urge the US authorities to destroy the foundations of the cryptocurrency ecosystem, which are believed to be conducive to illegal activities such as ransomware attacks. What does the intensification of the use of the state’s cryptocurrency mean in the larger area of digital assets?
Collection of coding experiences
The new module will operate in accordance with the principles laid out almost a year ago in the Ministry of Justice’s structure for enforcing cryptocurrency. The document argues, for example, that the agency has broad jurisdiction over criminal activity that affects the financial infrastructure or data warehouse in the United States.
In addition to investigating its own cases and supporting the efforts of US Attorney General’s offices across the country, NCET will work to strengthen collaboration between all relevant federal, state and local law enforcement agencies to combat cryptocurrency-related crime. The team is also tasked with educating and instructing police officers on cryptographic issues and developing investigative strategies.
The operators of the new target group represent the Department of Anti-Money Laundering and Asset Laundering, Computer Crime and Intellectual Property of the Department of Justice, as well as a number of US law firms.
In an interview with Cointelegraph, Kevin Fields, partner at law firm Perkins Coe, described MLARS and CCIPS as “highly respected components of the Department of Justice,” whose members are “well versed in cross-border investigations and law enforcement coordination. around the world.” ”
New tool for existing guidelines
NCET is expected to lead law enforcement action against illegal or unregistered money services, ransomware payment infrastructure, and many other markets where digital money interferes with criminal activity. This is nothing new, and the Department of Justice has simply developed a simpler and more coordinated mechanism to combat cybercrime and the ability to recover stolen funds.
The announcement also expands a series of developments demonstrating the Biden administration’s commitment to a law enforcement position primarily with regard to cybercrime, including criminal activities that facilitate cryptography.
Jackson Mueller, director of policy and public relations for digital real estate company Securrency, commented to Cointelegraph:
This announcement shouldn’t come as a surprise to us after the Biden administration and its efforts through federal financial regulators, the Treasury and the president’s working group, among others, collect coins to implement stricter controls and enforcement over broader ones. … ecological system.
Müller added that the emergence of NCET indicates that the government prefers policies that are more compliance-oriented than the engagement and collaboration orientation that many in the industry prefer.
Michael Bahar, head of cybersecurity at international law firm Eversheds Sutherland, traces the roots of the NCET initiative in Joe Biden’s May 2021 executive order, which prioritized the creation of the full power and resources of the federal government to protect the national economy. computer systems from cyberattacks. Bahr further commented:
As part of these government-wide efforts, the US Department of Justice draws years of experience in tracking money and eradicating money laundering, catching criminals and recovering funds, and disrupting the economy. An incentive for criminals to engage in ransomware attacks in the first place.
The Justice Department “is connecting the dots across all departments to focus on investigations and prosecutions related to cryptocurrencies,” said Ron Brizzy, a government affairs attorney and lobbyist for the law firm Gunster. Breezy added that he wouldn’t be surprised if some individual states repeat the federal initiative and create their own crypto enforcement teams in the near future.
The elimination of bad players in the crypto sector, which makes the entire industry have a bad reputation in the eyes of the public (and often politicians), is certainly a noble endeavor.