The US government will be forced to disconnect cryptocurrency companies from the US economic system if they fail to block and report illegal transactions, Deputy Treasury Secretary Wally Adeyemo warned on Wednesday.
Speaking at a meeting organized by the Blockchain Association, Mr. Adeyemo said that cryptocurrency firms must do more to limit the circulation of illicit money and that lack of action in that sector poses a risk to the United States.
Wally Adeyemo
“Our actions send a clear message that we will not hesitate to use all the tools the US government provides to protect our national security,” Mr. Adeyemo said.
On Tuesday, President Biden’s administration sent a letter to the US Congress asking them to draft new legislation that would give the Treasury Department the authority to control cryptocurrency markets used by actors the US government deems illegal. , said Mr. Adeyemo.
In October, the United States took measures aimed at cutting off funding to the Palestinian militant group Hamas following deadly attacks in Israel, targeting a Gaza-based cryptocurrency exchange firm among other targets.
Last week, Binance CEO Changpeng Zhaopre pleaded guilty to violating US anti-money laundering laws as part of a $4.3 billion fine. He resigned as the head of the world’s largest cryptocurrency firm.
Prosecutors said the Binance firm violated US anti-money laundering and sanctions laws and failed to report more than 100,000 suspicious transactions with organizations the US designates as terrorist groups, including Hamas, al Qaeda and ISIS, authorities said.