This is not good considering the current market situation of crypto. There are already hundreds of bad news out there, for example, exchangers collapse, Bank collapses, a few exchangers getting licenses banned, and much more. Most of the news also came from the USA only.
Here, if you read this news then it's coming as a shock that US security is at stake after careful reviewing of how the DeFi market is home to illicit spammers, money launderers, and much more! This side of crypto is helping them move the funds around the world without any hesitation and thus keeping all the regulators under pressure.
Recently, a US treasurer made an official statement that US security is not good in terms of financial management considering the large volume of money is getting diverted through the DeFi line which is for illegal stuff.
We have awakened the regulator's dragon, and I don't know but this could place crypto at risk.
Decentralized Cryptocurrency Markets Threaten U.S. Security, Treasury Says
Hearing that the DeFi markets are a threat to US national security is seriously concerning, man. That report from the Treasury Department is showing us some real talk about how risky the crypto world can be. It's true that without the right oversight, some bad apples can use DeFi services for dirty money laundry and other illegal activities. But let's not forget about the potential good things that DeFi services can bring, ya feel me? Like the Treasury undersecretary said, we gotta address these risks so we can get all the benefits of DeFi services.Here, if you read this news then it's coming as a shock that US security is at stake after careful reviewing of how the DeFi market is home to illicit spammers, money launderers, and much more! This side of crypto is helping them move the funds around the world without any hesitation and thus keeping all the regulators under pressure.
Recently, a US treasurer made an official statement that US security is not good in terms of financial management considering the large volume of money is getting diverted through the DeFi line which is for illegal stuff.
We have awakened the regulator's dragon, and I don't know but this could place crypto at risk.
Quote
WASHINGTON—The burgeoning decentralized cryptocurrency market threatens U.S. national security and needs greater oversight and enforcement against money-laundering, the U.S. Treasury Department said on Thursday.
The warning, in a new Treasury report assessing the risk of the so-called DeFi markets, lays the foundation for tougher regulations and punitive action by federal agencies.
DeFi platforms enable crypto investors to transact with each other through software running online, without a central intermediary overseeing transactions. Without the intermediaries of traditional finance such as banks, regulators currently have little insight into DeFi transactions.
Ransomware hackers, rogue states and other national security threats have seized upon the market’s opaqueness to move money around the world without detection, facilitating the financing critical to their operations, the Treasury Department report said.
“Illicit actors, including criminals, scammers, and North Korean cyber actors are using DeFi services in the process of laundering illicit funds,” said Brian Nelson, Treasury’s undersecretary for terrorism and financial intelligence. “Capturing the potential benefits associated with DeFi services requires addressing these risks.”
The report sketches out how the Treasury Department plans to bring the market under greater federal oversight, suggesting that platforms that fail to establish sufficient vetting policies risk enforcement action.
The private sector should use the department’s findings to inform their own risk mitigation strategies, the Treasury undersecretary said. Companies need to take clear steps, in line with regulations to counter money laundering, terror financing and sanctions-evasion, to prevent illicit actors from abusing DeFi services, Mr. Nelson said.
Among its recommendations, the Treasury Department said the federal government needs to bolster its existing supervision and enforcement of the market by requiring platforms to adhere to the same anti-money-laundering rules that banks and other financial institutions must follow. Federal agencies also need to expand their regulatory powers to cover potential gaps in oversight of the markets, it said, and work with other governments to establish international standards.
The warning, in a new Treasury report assessing the risk of the so-called DeFi markets, lays the foundation for tougher regulations and punitive action by federal agencies.
DeFi platforms enable crypto investors to transact with each other through software running online, without a central intermediary overseeing transactions. Without the intermediaries of traditional finance such as banks, regulators currently have little insight into DeFi transactions.
Ransomware hackers, rogue states and other national security threats have seized upon the market’s opaqueness to move money around the world without detection, facilitating the financing critical to their operations, the Treasury Department report said.
“Illicit actors, including criminals, scammers, and North Korean cyber actors are using DeFi services in the process of laundering illicit funds,” said Brian Nelson, Treasury’s undersecretary for terrorism and financial intelligence. “Capturing the potential benefits associated with DeFi services requires addressing these risks.”
The report sketches out how the Treasury Department plans to bring the market under greater federal oversight, suggesting that platforms that fail to establish sufficient vetting policies risk enforcement action.
The private sector should use the department’s findings to inform their own risk mitigation strategies, the Treasury undersecretary said. Companies need to take clear steps, in line with regulations to counter money laundering, terror financing and sanctions-evasion, to prevent illicit actors from abusing DeFi services, Mr. Nelson said.
Among its recommendations, the Treasury Department said the federal government needs to bolster its existing supervision and enforcement of the market by requiring platforms to adhere to the same anti-money-laundering rules that banks and other financial institutions must follow. Federal agencies also need to expand their regulatory powers to cover potential gaps in oversight of the markets, it said, and work with other governments to establish international standards.
Decentralized Cryptocurrency Markets Threaten U.S. Security, Treasury Says
The private sector needs to get their act together, like yesterday. We can't let those sketchy folks take advantage of DeFi services, it's just not cool. The companies need to play by the rules, plain and simple. That means no money laundering, no funding terror, no dodging sanctions. And they need to be on top of things, coming up with ways to stop DeFi services from getting abused.
Even though the report sounds like a bummer, I still think that with some good regulations, DeFi services can help bring financial inclusion and innovation to the masses. Governments worldwide need to work together and establish some international standards and beef up their regulatory powers to make sure nothing falls through the cracks. Cryptocurrencies are here to stay, so we gotta make sure they're being used the right way.
