Bitcoin on Nostr: Countering Terrorist Financing in the Digital Age The U.S. Department of the Treasury ...
Countering Terrorist Financing in the Digital Age
The U.S. Department of the Treasury is looking to bolster counter-terrorist financing measures, particularly addressing the misuse of cryptocurrencies by organizations like Hamas. In a letter and accompanying memo, the Treasury has proposed several recommendations to strengthen its authorities and close perceived gaps in current financial regulations.
- Among the proposals is the introduction of a new authority analogous to secondary sanctions specifically targeting crypto transactions that may aid terrorists. This could include additional record-keeping requirements or even bans for financial institutions on certain types of cryptocurrency dealings.
- The Treasury suggests categorizing entities such as virtual asset wallet providers, blockchain validators, and decentralized finance (DeFi) services as "financial institutions," making them subject to the Bank Secrecy Act. This would treat wallet providers, miners, and DeFi service providers similarly to traditional financial institutions in terms of regulation.
- The Treasury also seeks to extend the IEEPA to include "blockchain nodes or other elements of cryptocurrency transactions," aiming to sanction these technological components directly in response to the Tornado Cash litigation, despite acknowledging the technical and constitutional challenges such measures would face.
- The proposals underscore the struggle to balance necessary national security interests with constitutional rights such as freedom of expression. The efficacy and legality of these measures will depend on their precise legislative drafting, and significant scrutiny is expected as they develop.
https://www.coincenter.org/in-an-effort-to-close-perceived-loopholes-treasury-recommends-massive-expansion-of-warrantless-surveillance-and-power-to-sanction-open-source-software/
The U.S. Department of the Treasury is looking to bolster counter-terrorist financing measures, particularly addressing the misuse of cryptocurrencies by organizations like Hamas. In a letter and accompanying memo, the Treasury has proposed several recommendations to strengthen its authorities and close perceived gaps in current financial regulations.
- Among the proposals is the introduction of a new authority analogous to secondary sanctions specifically targeting crypto transactions that may aid terrorists. This could include additional record-keeping requirements or even bans for financial institutions on certain types of cryptocurrency dealings.
- The Treasury suggests categorizing entities such as virtual asset wallet providers, blockchain validators, and decentralized finance (DeFi) services as "financial institutions," making them subject to the Bank Secrecy Act. This would treat wallet providers, miners, and DeFi service providers similarly to traditional financial institutions in terms of regulation.
- The Treasury also seeks to extend the IEEPA to include "blockchain nodes or other elements of cryptocurrency transactions," aiming to sanction these technological components directly in response to the Tornado Cash litigation, despite acknowledging the technical and constitutional challenges such measures would face.
- The proposals underscore the struggle to balance necessary national security interests with constitutional rights such as freedom of expression. The efficacy and legality of these measures will depend on their precise legislative drafting, and significant scrutiny is expected as they develop.
https://www.coincenter.org/in-an-effort-to-close-perceived-loopholes-treasury-recommends-massive-expansion-of-warrantless-surveillance-and-power-to-sanction-open-source-software/