The United States House of Representatives Financial Services Committee (FSC) has scheduled a crucial hearing for November 15th, aimed at delving into illicit activities within the cryptocurrency ecosystem.
Titled “Crypto Crime in Context: Breaking Down Illicit Activity in Digital Assets,” this hearing is expected to feature prominent figures from the crypto industry.
Among the notable witnesses set to participate in the hearing are Bill Hughes, senior counsel and director of global regulatory matters at Consensys, and Jonathan Levin, co-founder and chief strategy officer at Chainalysis.
They will be joined by Jane Khodarkovsky, a former federal officer and specialist in human trafficking finance.
The FSC has made it clear that their primary objective is to ensure that the digital asset ecosystem remains secure and impervious to exploitation by malicious actors.
The focus of the hearing will primarily revolve around discussions related to illicit activities, such as money laundering and terrorist financing, within the cryptocurrency space.
The FSC cited a Chainalysis report from January 2023, which highlighted that illicit cryptocurrency volumes had surged to all-time highs, coinciding with an increase in sanctions and hacking incidents.
Furthermore, the hearing will scrutinize the effectiveness of Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures enforced by crypto exchanges and decentralized finance providers. It aims to assess the adequacy of these measures in combating illegal activities.
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The role played by governing entities, including the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and the Department of Justice (DOJ), will also come under the spotlight during this hearing.
In a related context, back in July, Representative Patrick McHenry, the chairman of the FSC, announced plans to draft legislation that would provide regulatory clarity for stablecoins designed for payment purposes.
This move seeks to address concerns surrounding the issuance and use of stablecoins.
Meanwhile, the Department of Justice (DOJ) has taken steps to bolster its efforts in combating cryptocurrency-related crimes.
It has decided to merge its Computer Crime and Intellectual Property Section with the National Cryptocurrency Enforcement Team to form a more robust unit specifically tasked with combating ransomware crimes.
This strategic move reflects the government’s commitment to tackling crypto-related criminal activities effectively.
In conclusion, the upcoming FSC hearing signifies the government’s proactive stance in addressing the challenges posed by illicit activities within the cryptocurrency space and ensuring the integrity of the digital asset ecosystem.
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