US Department of Justice Releases Cryptocurrency Enforcement Framework

Brian Njuguna   Oct 09, 2020 01:45

As the prevalence and usage of cryptocurrency continues growing rapidly, the US Department of Justice (DOJ) has released a cryptocurrency enforcement framework, which offers a comprehensive overview of the enforcement challenges and emerging threats in the crypto space.

Cryptocurrency has the potential to transform society

During the release of the framework, Attorney General William P. Barr alluded to the fact that cryptocurrency was an emerging technology that could revolutionize the way people interact. As a result, federal enforcement priorities had to be implemented in this growing space for a smooth transition.

He noted:

“Cryptocurrency is a technology that could fundamentally transform how human beings interact and how we organize society. Ensuring that use of this technology is safe, and does not imperil our public safety or our national security, is vitally important to America and its allies.”

The cryptocurrency enforcement framework is a cohesive report produced by the Attorney General’s Cyber-Digital Task Force detailing crucial apparatus like taming illicit usage of cryptocurrency. For instance, it highlights how criminals utilize crypto to hide their tracks on the dark web.

FBI Director Christopher Wray stated:

“At the FBI, we see first-hand the dangers posed when criminals bend the important technological promise of cryptocurrency to illicit ends. As this Enforcement Framework describes, we see criminals using cryptocurrency to try to prevent us from 'following the money’ across a wide range of investigations, as well as to trade in illicit goods like criminal tools on the dark web.”

He added that cybercriminals had a preference for cryptocurrency whenever they conducted ransomware attacks as it could conceal their identities when obtaining malware, payments, and infrastructure.

Tremendous promise for the future

As much as distributed ledger technology and cryptocurrencies present a tremendous promise for the future, Barr acknowledged that it was crucial for crypto entities to adhere to the law.

The framework is divided into three parts, and it outlines fundamental information aimed at enlightening the public about legal regimes governing blockchain technology and cryptocurrency.

Last month, the US Central Intelligence Agency (CIA) rolled out a federal laboratory and in-house research and development arm dubbed CIA Labs to scale up technological and scientific breakthroughs like blockchain for future intelligence challenges.

Image source: Shutterstock

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