American Finance Services Committee To Investigate Crypto Illegal Activities
In a recent news report, the United States Finance Services Committee (FSC) is set to investigate multiple criminal and illegal activities in the cryptocurrency industry and has scheduled a crucial hearing in alignment with this task on Wednesday, where it intends to break down illicit activities in the digital asset industry.
According to the report, the FSC, which is a sub-panel of the United States House of Representatives, stated in a recent announcement that it intends to fulfill its primary goal, which is to make sure that the cryptocurrency industry in the country is secured and repellant to criminal and illegal activities in order to protect investors in the region from the risks the industry poses.
In alignment with the desire to fulfill its goal, the FSC had previously announced to hold a hearing on Wednesday to create an avenue to delve deep into the various illegal activities that exist within the digital asset ecosystem.
FSC Hearing To Feature Prominent Figures
This hearing, which is to bring crypto crime into discussion, will reportedly be graced by many prominent figures and experts in the crypto ecosystem. According to the news, some notable individuals expected at the event include the senior lawyer and Consensys’ director of global regulatory affairs, Bill Hughes.
In addition, the chief strategy officer and co-founder of Chainalysis (a prominent crypto analytic firm), Jonathan Levin. Also, the duo would be joined by an expert in human trafficking finance who was once a federal officer, Jane Khodarkovsky.
Furthermore, the committee pointed out that their main aim in organizing the hearing is to make sure the digital asset industry maintains top-notch security protocols that would prevent malicious actors from exploiting investors on the various crypto platforms that exist. Hence, all the discussions planned to take place in the hearing would be focussed on events and cases that are related to crimes involving cryptocurrencies, such as terrorist funding and money laundering in the industry.
Committee To Address Security Challenges In Crypto Space
During the announcement, the Federal Service Committee referred to the January 2023 report by Chainalysis, which pointed out that the volume of illegal activities in the crypto industry rapidly increased, exceeding former highs. In addition, the report stated that the rate of sanctions and hacking of crypto platforms was also on the increase.
Additionally, it stated that the proposed hearing would examine how effective the Anti-Money Laundering and Counter-Terrorist Financing protocol, which the US government mandated all cryptocurrency exchanges and decentralized finance (DeFi) projects to implement. The purpose of the scrutiny is to test the sufficiency of these security protocols in fighting illicit activities in the digital asset ecosystem.
In addition, the hearing plans to discuss the role several government agencies, such as the Department of Justice, the Office of Foreign Assets Control, and the Financial Crimes Enforcement Network, play in improving the security and protection of investors in the country.
US Regulators Move To Reduce Crypto Crime Rates
In another report, the chairman of the FSC, Rep. Patrick McHenry, had previously stated in January that the committee is working on a bill that would shed more light on the regulations surrounding stablecoins created for payment settlement utility cases. The announcement was said to address growing concerns about the issuance and purpose of stablecoins.
On the other hand, the Department of Justice has been making efforts to bolster its fight against crimes related to crypto assets. Recently, the DoJ announced that the National Crypto Enforcement Group would be joining its Intellectual Property and Computer Crime Section to create a special squad aimed at fighting crimes related to ransomware.
With the new development, the government agency is showing its commitment to ward off criminal activities related to crypto effectively. This is also evident in the hearing the FSC scheduled as it shows the government is proactive in solving the challenges and issues illegal activities cause in the digital asset industry. It also shows their efforts to improve the integrity of the ecosystem.
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