Some Bitcoin whales say that the US Department of Justice’s willing to make a new implementation regulation in the cryptocurrency markets could have negative long-term effects.
A new document titled “Crypto Money Application Framework”; It explains how multiple US agencies are working together to fight cryptocurrency scams, money laundering, or people who use it to finance terrorism.
The framework, which aims to define how the DOJ applies existing laws, claims that the agency has a solid and expanding mandate to examine service providers and other organizations that violate US regulations. The Framework also states that the DOJ has the power to go after virtual asset service providers (VASPs) that violate US law “even if they are not located in the US.”
The report shows that the DOJ sees the use of privacy-oriented cryptocurrencies such as Monero as a “high-risk activity” and potentially dangerous services for cryptocurrency mixers’ anti-money laundering procedures.
“The report released by the DOJ, to be honest, is not good for cryptocurrency markets in general.”
In the report, the possible criminal behavior of ‘anonymized cryptocurrencies (AEC)’ such as Monero (XMR), Dash (DASH) and Zcash (ZEC) was marked red as an indicator.
It refers to a complete attack (for Bitcoin or other cryptos) against privacy-enhancing services or tools such as mixers. The rationale is that “virtual money theft is frequently used by money launderers”.
“As expected, there is not much in terms of solid evidence to show the demonic nature of cryptocurrencies (such as the real-world link with real terrorist activity). However, this does not prevent the report from drawing distant predictions for the future. ”
Recent accusations by the DoJ and the Commodity Futures Trading Commission against the cryptocurrency exchange BitMEX may provide a clue as to what will come from US regulators and law enforcement agencies.
According to a comprehensive 2019 report from the RAND company, there is little evidence to suggest that terrorists are using cryptocurrency, but researchers say this could change as the technology evolves.
“We see little current evidence of cryptocurrency adoption or motivation to do so by terrorist organizations, but this may change as cryptocurrency Technology advances.”