Ramp Up Crypto Exchange Regulation

An advisory body will reportedly tell the American government to increase the level of its policing of crypto exchanges – with a new spate of anti-money laundering (AML) measures possibly incoming at trading platforms operating in the country.

Per a report from Reuters, the Ransomware Task Force, a public-private body made up of secret service officials and industry experts and charged with mitigating malware, cybercrime and other cyber-risks, is set to advise Washington that it needs to step up its regulatory game in the crypto industry.

The news agency wrote that the task force will recommend policy changes, and will likely advise extending know-your-customer (KYC) “regulations to currency exchanges,” as well as “imposing tougher licensing requirements for those processing cryptocurrency.”

The task force also wants the government to create “a special team of experts within the Justice Department” that would allow prosecutors to seize crypto holdings more effectively, as the experts concluded that the current processes for crypto confiscation are “currently fraught with logistical and legal challenges.”

The task force’s membership comprises FBI officials, as well as individuals from the United States Secret Service, alongside representatives from “major tech and security companies.”

The news agency pointed out that ideas like these have been put before policymakers before, with the Financial Crimes Enforcement Network also asking Washington to create a system of disclosure rules for crypto transactions worth over USD 10,000.

Any legal requirements of this nature would be subject to parliamentary approval, but Reuters also quoted Philip Reiner, the chief executive of the Institute for Security and Technology, and the task force’s chair as stating,

“There’s a lot more that can be done to constrain the abuse of these pretty amazing technologies.”

An unnamed Homeland Security “official” was also quoted as stating that the recommended legal changes “would be huge,” adding,

“[Crypto] is a world that was created exactly to be anonymous, but at some point, you have to give up something to make sure everyone is safe.”

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