The Financial Technology Protection Act, a bipartisan bill introduced to both the U.S. Senate and House of Representatives on Thursday, would create a working group tasked with studying how terrorists or other criminals might use cryptocurrencies and other new financial technologies and develop proposals for appropriate countermeasures. The group, which would include representatives from the U.S. Treasury, FinCEN and other government departments, as well as industry experts, would be charged with investigating how and where virtual currency can be abused and finding ways to limit the damage caused by these activities.

The goal of the group is to take a comprehensive approach to the threat posed by crypto and come up with recommendations that Congress and regulatory agencies can implement in order to better target and stop illicit activity. Various deadlines have been set out within the bill, from annual reports and final reports after a window of four years that see congress continually briefed on the progress of the study.

The introduction of this bill highlights the growing recognition of the danger posed by terrorists and other criminals taking advantage of the anonymous and untraceable characteristics of certain cryptocurrency protocols. Examples include an analysis of blockchain transactions showing that North Korea has stolen over $2 billion for its nuclear program and radical extremist groups raising and laundering funds on Telegram.

It is evident that traffickers and other criminals are using cryptocurrencies as a way to avoid scrutiny, and this bill is an important step in mitigating this risk. The bill seeks to both investigate the illicit uses of digital currencies and provide an action plan on how to limit the damage they cause. The results of the study provide lawmakers and regulators with the information needed to create an effective regulatory structure that can better respond to these threats.



Other News from Today