Wednesday, September 28, 2022

Cryptocurrency Regulation Increases in the US: “Tornado Cash” Goes on the Blacklist

Platforms for transacting virtual currencies combine various digital assets, including illegal or legitimately obtained funds, so that illegal actors can hide the origin of the stolen funds.

“Tornado Cash has repeatedly failed to implement effective controls designed to prevent the laundering of funds from malicious cyber actors and without basic measures to address its risks.”, explained Brian Nelson, assistant secretary of terrorism and financial intelligence at the Treasury Department.

He added that the agency will “continue to aggressively take action against mixers who launder virtual currency for criminals and those who aid them.”

This is the second in a series of sanctions imposed against a company for transacting with digital currencies. In May, the United States announced sanctions against North Korean firm, which was accused of helping the Lazarus Group, a sanctioned North Korean hacker group, steal $620 million worth of digital currency in March.

The new restrictions also point to the increasing use of digital assets by state actors and individuals to perpetuate illegal acts.

US lawmakers and officials have raised concerns about the use of cryptocurrencies to engage in illegal acts.

In March, President Joe Biden issued an executive order on digital assets asking federal regulators for support in mitigating illicit finance and national security risks posed by the misuse of digital assets.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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