Janet Yellen, the new US Treasury Secretary, has warned of “a growing problem” of “the misuse of cryptocurrencies”. She stressed that “cryptocurrencies have been used to launder the profits of online drug traffickers; they have been a tool to finance terrorism. “
Janet Yellen warns of cryptocurrency risks
The US Treasury Department hosted its inaugural round table conference on innovation policy for the financial sector on February 9-10. described.
Finance Minister Janet Yellen spoke briefly about cryptocurrencies during her opening speech. “We live in the midst of an explosion of fraud, money laundering, terrorist financing and data privacy risks. As the pandemic has moved more of life on the Internet, crime has gone with it, ”she said. One of the issues she outlined concerns cryptocurrency.
Yellen claimed:
The misuse of cryptocurrencies and virtual assets is also a growing problem. I see the promise of these new technologies, but I also see the reality: cryptocurrencies have been used to launder the profits of online drug traffickers; they have been a tool to finance terrorism.
“Since my time at the Fed, I have known the critical role your institutions play in fighting these types of crimes,” she told the event attendees. “The private sector is investing huge resources and finding ways to prevent bad actors from exploiting existing technologies. You also develop new ones. “
During her Senate hearing, Yellen caused quite a stir in the crypto community, saying that cryptocurrencies are “primarily for illegal financing.” However, a report by blockchain analytics firm Chainalysis shows that last year only 0.34% of all crypto transactions were related to criminal activity. Many also pointed out that the majority of money laundering activities take place through fiat currencies, especially the US dollar.
Yellen then clarified her stance on cryptocurrencies and promised “effective” crypto regulation. Meanwhile, pro-bitcoin US Senator Cynthia Lummis has spoken to Yellen about cryptocurrencies and plans to convince the Treasury Secretary that bitcoin is “a great store of value.”
What do you think about what Yellen said about cryptocurrencies? Let us know in the comments below.
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