US Deputy Treasury Secretary Calls for More Tools to Crack Down on Crypto Companies

Wally Adeyemo, Deputy Secretary of the United States Department of the Treasury, said that the department is looking for new sanctions tools to track bad actors in the crypto space, citing the recent agreement with Binance.

In a statement to the Blockchain Association's Policy Summit on November 29, the US Treasury asked Congress to authorize sanctions that would completely cut off an entity from the US financial system. The Treasury undersecretary said the move was aimed at stopping actors like Hamas from “getting us.”[ing] A safe place in the digital asset ecosystem” but also referred to the US authorities’ agreement with crypto exchange Binance.

“Over the years, Binance has allowed itself to be used by perpetrators of child sex abuse, drug trafficking and terrorism in over 100,000 transactions,” Adeyemo said. “Groups like Hamas, al-Qaeda and ISIS have made these transactions.”

Just in: “Remarks from USTreasury @WallyAdeyemo at the 2023 Blockchain Association Policy Summit” #Crypto #Web3 @TheSiliconHill pic.twitter.com/1rjOjQp5q5

— Dan Spuller (@DanSpuller) November 29, 2023

According to the Deputy Treasury Secretary, the US government should coordinate with companies in the financial sector. Treasury officials hinted that stablecoin providers based outside the US could be targeted by authorities as they work to “close these loopholes.”

RELATED: US Treasury Sanctions Gaza-Based Crypto Operator For Alleged Hamas Ties

Adeyemo's comment comes after the US Treasury's Office of Foreign Assets Control has imposed sanctions on crypto mixer Sinbad for allegedly facilitating the transfer of funds to North Korea's Lazarus Group. In the year On November 21, Binance settled with US authorities, including those at the Treasury, in a $4.3 billion settlement, forcing former CEO Changpeng Zhao to step down and plead guilty to one count of felony charges.

“We must modernize our illicit finance authorities to adapt to the challenges we face today, including those presented by the evolving digital asset ecosystem. […] In the year We cannot rely on decades of legal pronouncements to address the illegitimate financial risks we face in 2023.

In August, the US Treasury released a bill aimed at addressing issues with reporting and paying taxes on crypto transactions. In the year Many have criticized the proposal as being unworkable due to reporting requirements for brokers expected to take effect in 2026.

Magazine: US law enforcement agencies are turning up the heat on crypto-related crimes.