US Treasury Secretary Janet Yellen is concerned about the alleged criminal component of cryptocurrency.
On February 10, in a commentary on the Financial Sector Innovation Roundtable, Treasury Secretary Janet Yellen said the misuse of cryptocurrencies and virtual assets is becoming a growing problem along with cyber attacks fueled by the global pandemic.
Minister Yellen said that despite the potential of new technologies such as cryptography, these assets still carry significant risks. “I see the promise of these new technologies, but I also see the truth: cryptocurrencies were used to launder the proceeds of drug dealers; they were a terrorist financing instrument, ”Yellen said.
The private sector is a major contributor to the government’s efforts to combat these cryptocurrency-related crimes, the official said. “From my time at the Federal Reserve, I know how important your organizations are in combating these kinds of crimes. The private sector is investing huge resources and looking for ways to prevent attackers from abusing existing technologies. You can also develop new tools, ”he said. Yellen said. …
In a statement, Yellen also stressed the need for “honest innovation” to “benefit the financial system and modern information technology for more people.” She said that fair innovation could be on par with the Treasury’s current slogan of “responsible innovation.”
While Yellen argued that cryptocurrency misuse is a “growing problem,” it appears that by 2020, cryptocurrency-related crime has declined. According to Chainalysis, one of the largest crypto intelligence companies in the United States, the share of criminals in all cryptocurrencies. activity in 2020 will decline to 0.34%. According to the company, in 2019, criminal activity accounted for more than 2% of the volume of transactions with cryptocurrency.
In January 2021, the US Department of Justice confiscated half a million dollars in cryptocurrencies from the main malware operator using Chainalysis.