U.S. Lawmakers Call to Halt Crypto Use In Facilitating Illicit Activities


The U.S. Home of Representatives has passed a bill requiring the Comptroller General of the United States to propose laws and regulations to place an end to drug and sex trafficking right after examining how cryptocurrencies and on-line marketplaces facilitate these activities.

The bill, H.R. 6069, sponsored by Rep. Juan Vargas, is titled, &ldquoFight Illicit Networks and Detect (Locate) Targeted traffic Act of 2018.&rdquo The bill would allow Congress to develop ways to regulate the use of virtual currencies to prevent illegal drug sales and sex trafficking.

Vargas stated he hopes to see the same level of help for the bill in the U.S. Senate.

Payment Anonymity Cited

The anonymity permitted by virtual currencies has made them a significant signifies of payment for illicit activities, according to a press release about the bill. These activities are believed to be the most detrimental activities that on the internet marketplaces and the dark web enable.

The Drug Enforcement Administration&rsquos 2017 National Drug Assessment reported that criminal organizations are escalating their use of virtual currencies for these activities, the bill notes. It additional notes that virtual currencies and illegal on the web marketplaces are contributing to the nation&rsquos opioid crisis.

According to the U.S. Treasury Division, virtual currencies are created to meet a reputable marketplace want, the bill notes. In addition, according to a Federal Reserve Bank of Chicago economist, U.S. consumers are seeking versatile payment possibilities that offer quick finality that no payment approach meets.

Virtual currencies, nevertheless, can supply money&rsquos anonymity and instant finality and are far more versatile than cash for cross-border and on-line transactions. Therefore, virtual currencies are vulnerable for illicit transactions.

Bill Seeks Answers

The bill instructs the Comptroller Common to decide how payment strategies facilitate the acquiring, promoting and financing of these illicit activities.

It particularly seeks an explanation of how illicit funds sent through virtual currencies are repatriated into the standard banking program via money laundering or any other methods.

The bill also desires the Comptroller to figure out how both state and non-state actors advantage from or participate in the selling, acquiring and financing of solutions that are associated with these illegal activities.

A single purpose is to determine how state and federal agencies can halt the commerce of these activities, as properly as what efforts will avert the proceeds from such activities from getting into the U.S. banking technique.

Can Virtual Currency Help Law Enforcement?

The bill also recognizes the possibility of utilizing virtual currency technologies to avert these activities, as it calls on the government to determine how the technologies can deter and detect such activities. It calls for an understanding of how virtual currencies&rsquo traceable and immutable nature can help track and prosecute illicit funding activities.

The Comptroller is necessary to submit a report summarizing its study a single year following the law&rsquos enactment to each the U.S. Residence of Representatives&rsquo Committee on Financial Solutions and the Senate&rsquos Committee on Banking, Housing and Urban Affairs.

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Published at Wed, 27 Jun 2018 19:17:29 +0000