A group of US government and industry experts set up by the Department of Justice sees cryptocurrency regulation as a way to combat ransomware.
According to a Reuters publication citing anonymous sources, a group of experts set up by the US Department of Justice to fight ransomware last week will recommend “aggressive tracking of bitcoin and other cryptocurrencies.” The possible recommendations will expand the regulatory requirements for cryptocurrency exchanges to bring them in line with similar standards for financial institutions.
According to Coveware, as of Q1 2020, 99% of payments to ransomware operators were made in BTC. According to a recent report, the average ransom rate in cryptocurrencies when attacked by ransomware has reached $ 220,298.
The Anti-Ransomware Task Force is comprised of officers from several departments in the Department of Justice, including the Federal Bureau of Investigation, Civil Administration, Criminal Administration, Office of Homeland Security, and the United States Attorney’s Office. Treasury and Homeland Security Ministries are also part of the group, along with four technology companies.
According to Reuters, the group’s recommendations, due tomorrow, will target the fight against anonymous cryptocurrency transactions. However, depending on the form of these recommendations, congressional approval may be required.
Reuters points to three key recommendations that can be offered: applying KYC rules when exchanging cryptocurrencies, increasing the requirements for cryptocurrency firms to obtain money transfer licenses, and expanding anti-money laundering rules for cryptocurrency transactions. These guidelines can prevent illicitly obtained BTC from passing through regulated exchanges.
The recommendations will be in line with the rules proposed by the Financial Crimes Enforcement Network (FinCEN) last December. These rules will require exchanges to store information about customers transferring cryptocurrency worth more than $ 3,000 per day to private cryptocurrency wallets, as well as reports on transactions of users who make transactions in cryptoassets worth more than $ 10,000 per day. The proposal drew criticism from industry participants.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
