According to Bloomberg, US Deputy Treasury Secretary Adewale O. Adeyemo requested new sanctions powers from Congress to combat illegal financial transactions made through cryptocurrencies.
In his written statement prepared for the Senate Banking, Housing and Urban Affairs Committee Hearing, Adeyemo pointed out that terrorist groups have been trying to benefit from cryptocurrencies for the past few years.
Adeyome also stated that these terrorist groups are using more cryptocurrencies to hide their identities and resources, and said that this situation is now a big problem.
“Our problem is that actors are increasingly finding ways to hide their identities and move resources using cryptocurrencies.”
Pointing out that groups such as Syria-based Al Qaeda launder money using Bitcoin (BTC), Deputy Minister Adeyemo emphasized in his statement that malicious actors, including state actors such as Iran's Quds Force, North Korea and Russia, use cryptocurrencies.
At this point, Adeyemo stated that Russia is using alternative payment methods such as stablecoin to overcome sanctions and continue its war financing, and stated that urgent measures should be taken on this issue.
“Sanction Powers Need to Be Expanded!”
Finally, reminding the Committee of the proposals presented to the Committee in November to expand the sanctions powers of the Treasury, Adeyemo stated that the three main reforms included in the proposals were necessary.
“As of now, the U.S. Treasury has the authority to ban U.S. accounts and transactions of foreign entities engaging in questionable activities.
But unlike banks, foreign cryptocurrency exchanges and some money services businesses do not have or depend on correspondent accounts for all their transactions. That's why the US government needs to have a new secondary enforcement authority.
“As a result, the US Treasury's powers to stop all forms of illegal crypto financing and monitor crypto exchanges need to be expanded, and the treasury should be given greater authority to impose sanctions against crypto exchanges.”
*This is not investment advice.