Posted 6 months ago | by @devadmin
The U.S. Department of Justice (DOJ), is threatening the existence of Privacy Coins stating using them is akin to potential “criminal conduct.”
According to CoinTelegraph, a new report from the U.S. Department of Justice crypto traders dealing with coins like Monero, Dash, and Zcash are engaging in “high-risk activities.”
The report by the U.S. Attorney General’s Cyber Digital Task Force called Cryptocurrency: An Enforcement Framework released on Oct. 8, states anonymity enhanced cryptocurrencies or (AECs) can undermine existing anti-money laundering (AML) and combat the financing of terrorism (CFT) regulations put in place by businesses dealing in fiat. The task force cited coins including Monero (XMR), Dash (DASH), and Zcash (ZEC) in their report.
“The Department considers the use of AECs to be a high-risk activity that is indicative of possible criminal conduct,” the report stated. “AECs are often exchanged for other virtual assets like Bitcoin, which may indicate a cross-virtual-asset layering technique for users attempting to conceal criminal behavior.”
According to the report, privacy coin holders are able to obfuscate the origin of their tokens using — mixers, tumblers, and chain hopping —undermining AML, and CFT rules.
Chain hopping, which the DOJ claims is “frequently used by individuals who are laundering proceeds of virtual currency thefts,” involves swapping one’s crypto holdings for assets for other assets on another chain. Mixers and tumblers make it difficult for investigators to trace funds by mixing crypto holdings from multiple traders before they’re sent to the appropriate wallet.
“Operators of these services can be criminally liable for money laundering because these mixers and tumblers are designed specifically to ‘conceal or disguise the nature, the location, the source, the ownership, or the control’ of a financial transaction.”
The DOJ is really asserting its dominance like a dog that sleeps on your bed and pushes you off. The DOJ also released a statement in regards to foreign crypto businesses in the same report stating, they have broad extraterritorial jurisdiction over crypto-related businesses.
The agency states it will use its authority, “where virtual asset transactions touch financial, data storage, or other computer systems within the United States”, if they use cryptocurrency to import illegal products into the U.S. and if they “provide illicit services to defraud or steal from U.S. residents”.
The Bitboy Crypto team told you first that historic regulations are coming to the cryptocurrency space, adding that the Internal Revenue Service (IRS) had its eyes specifically on Monero holding a competition to crack its encryption for $625K. Listen to Ben warn against holding XMR, ZEC, Dash, and others in the video below.