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US Announces Enforcement Actions to Regulate Cryptocurrency Businesses

24 November, 2023

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The DOJ will launch a series of enforcement actions to regulate virtual asset service providers (VASPs) in the upcoming week. These actions are against the individuals and entities that are using crypto businesses in illegal terms. The department collaborates with US federal agencies to supervise virtual assets and crack down on their involvement in ransomware attacks, tax evasion, and other crimes. They investigated significant cryptocurrency platforms, wallets, and trading companies to monitor AML compliance system loopholes. The US government also conducted extensive investigations into the use of cryptocurrency in money laundering. In addition, the DOJ has strengthened its partnerships with other countries to regulate cryptocurrency activity.

Moreover, to investigate criminal activity and hold offenders accountable, the DOJ established a special task force dedicated to investigating Ransomware and Digital Extortion. This task force coordinated with other regional agencies and foreign partners. Previously, the DOJ arrested two Chinese nationalists due to laundering $100 million around the globe. They are also involved with North Korean hackers to steal cryptocurrency from various virtual asset platforms. The DOJ task force also recovered $2.3 million from hackers in March 2021 after they hacked the US gasoline and disrupted their system for days. Most of these criminals faced civil and jurisdiction charges. Some shell companies conduct settlements with the governing bodies. However, the DOJ did not reveal the names of these scammers and companies’ shareholders. 

The DOJ’s enforcement measures against cryptocurrencies demonstrate the administration of Governor Biden’s dedication to the fight against money laundering. Concerns about consumer safety, the state of the economy, and financial stability have prompted some significant nations to enact new regulations governing cryptocurrencies and to support penalties for wallets that operate illegally. 

The DOJ’s enforcement will significantly impact the cryptocurrency market and assist regulatory bodies in conducting investors’ due diligence and individual users who are involved in illicit activities. They also emphasized other nations to impose additional regulations or outright ban the trade and mining of cryptocurrencies, claiming issues about national security, consumer protection, the environment, and financial stability. The US government has also implemented rules that require crypto exchanges to report suspicious activity to authorities. In addition, the government has tightened its security measures to prevent cryptocurrency fraud and criminal activity. Finally, the government is actively working to create a legal framework to regulate the cryptocurrency industry.

Suggested Reads: 

UK Discloses Final Proposal to Regulate Crypto Trading Businesses

European Union Introduces MiCA Laws to Regulate Opaque Crypto Firms

US Charges Chinese Companies to Leverage Crypto For Illicit Activities

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