More terrorists and illegal organizations have been turning to crypto to fund their operations, according to US Treasury Secretary Janet Yellen.
With all that has been going around Bitcoin and cryptocurrencies, US Treasury Secretary Janet Yellen's warning brings a well-known problem, the illegitimate use of crypto tokens to fund terrorist organizations and crime.
North Korea was implicated in stealing millions in 2020 to feed its nuclear programme as the country is subject to stringent international sanctions. Taking part in a financial sector policy roundtable, Yellen shared her concerns about the dark side of crypto.
“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’ve been a tool to finance terrorism”, Yellen stated.
Yellen commended the passage of the Anti-Money Laundering Act and National Defense Authorization Act and said that those two pieces of legislation were an important step forward in combating illicit activities, including anti-money laundering and financial terrorism.
She sees this as an important step forward in combating the various risks related to financial fraud and funding extremist organizations. The US has been pulling its weight too, dismantling funding rings backing terrorist organizations such as Al-Qaeda, Hamas, and ISIS.
While interest in cryptocurrencies is soaring, Yellen has urged lawmakers and regulators to acknowledge the security risks. Her words are all the more reason why cryptocurrencies should be etched into a legal framework.