A new task force report released this morning by the Biden administration reveals that cryptocurrency regulation is at a crossroads. While some members of the task force argue the time has come for the U.S. government to embrace the new technology, others say it is necessary to slow down the current regulatory environment. The report recommends a new regulatory framework that will support the cryptocurrency industry in the short term while laying the foundations for a more comprehensive regulatory structure in the long term.
A task force called the Secure and Fair Enforcement of Cryptocurrency Regulations (or SAFENet for short) has just released a scathing report on the corruption and exploitation that is occurring in the cryptocurrency industry. Based out of Delaware, the SAFENet is a self-governing body that regulates all aspects of the cryptocurrency industry. They have already been tracking illegal activities in the industry for years now, but it’s only recently that they have been able to collect enough evidence on certain players in the industry to make a case for tighter regulations.
A public-private working group has submitted a report to the Biden administration with recommendations for tighter regulation of cryptocurrencies, including bitcoin, to combat ransomware. The cryptocurrency industry, which enables ransomware crimes, needs to be more heavily regulated, the task force writes.
White House calls for tighter regulation of cryptocurrencies
On Thursday, a task force of the Biden administration, organized by the Institute for Security and Technology, presented a report titled Fighting Ransomware, which contains 48 recommendations, some of which are aimed at strengthening the regulation of cryptocurrencies.
The recommendations were developed by the Ransomware Task Force (RTF), which the report describes as a broad coalition of volunteer experts from industry, government, law enforcement, civil society, cybersecurity insurers and international organizations. It aims to provide a strategic framework for a systematic and comprehensive approach to combating ransomware.
According to the report, payments for ransomware are usually made in cryptocurrency, which is difficult to track. One of the priority recommendations of the report is the following.
The cryptocurrency industry, which enables ransomware crimes, must be more strictly regulated. Governments should require cryptocurrency exchanges, crypto banks and OTC trading desks to comply with existing laws, including know-your-customer (KYC), anti-money laundering (AML) and counter-terrorism financing (CFT) laws.
The report makes some recommendations regarding cryptocurrencies, including. B. develop new levers for voluntary sharing of cryptocurrency payment metrics, encourage voluntary information sharing between cryptocurrency organizations and law enforcement agencies, and centralize cryptocurrency seizure expertise and scale up cryptocurrency seizure processes.
The use of crypto-currencies exacerbates the problem of identifying the criminals involved in sending ransomware, as payments in these currencies are difficult to attribute to an individual, the report said. Ransomware criminals can also disguise their transactions through crypto-currency blending services. The article also notes that some groups will also demand payment in private currency, such as Monero. However, the working group noted that these coins are currently not as liquid as bitcoin and other cryptocurrencies.
The RTF consists of representatives from the US Federal Bureau of Investigation (FBI), the UK National Crime Agency (NCA), as well as representatives from the US Secret Service (USSS), the UK National Cyber Security Centre (NCSC) and the National Cybercrime Coordination Unit of the Royal Canadian Mounted Police.
Ransomware payments from private companies pump millions of dollars into the criminal business each year, according to the report, which found that the total amount paid by ransomware victims increased 311% to nearly $350 million in cryptocurrency by 2020.
What do you think of this task force calling on the government to tighten regulation of cryptocurrencies? Let us know your comments in the section below.
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