Top US regulator wants end to crypto anonymity

The quasi-anonymous status of cryptocurrencies has allowed crime to thrive, argues US CFTC commissioner Christy Goldsmith Romero.

The anonymous nature of cryptocurrencies must come to an end if they are ever to become a meaningful part of finance, according to a top US financial regulator.

US Commodity Futures Trading Commission commissioner Christy Goldsmith Romero said on Tuesday that crypto assets have been financing illegal activities, which poses national security risks, such as money laundering, which must be addressed swiftly.

“It’s essential for governments, and particularly the industry, to address that which makes crypto so attractive to illicit finance, and that is the allure of anonymity”, she said.

She added that crypto companies should not be using software tools that hide users’ identification by pooling multiple currencies from thousands of addresses, a process known as ‘mixing’.

The US has already taken steps to shut down mixing operations, and has recently gone after Tornado Cash, a service that is suspected of helping hackers to hide their illicit funds. Investigations are still ongoing

“It’s possible for all crypto companies to distance themselves from mixers and anonymity-enhancing technology, while still providing customers financial privacy”, Romero said, although she also conceded that a broader regulatory framework is needed on a global, as well as domestic, level.

The US is not the only jurisdiction looking into the anonymity of crypto, with the European Union and the UK looking at similar regulation as they try to protect their own consumers from fraud.

Gambling platforms that accept cryptocurrencies are often targeted by money launderers, who use tokens to buy credit or in-game currency then cash out after a few transactions.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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