DoJ calls on the US President to strengthen international law to curb crypto-related crime

• The report by DC’s Attorney General noted that the various United States agencies support the responsible use and development of digital assets.
• The report acknowledged the use of sophisticated tools to obfuscate crypto transactions related to criminals.

The office of the Attorney General, Washington DC, has recommended stronger international cooperation to curb crypto-related crimes. The report was in pursuant to the March 9, 2022, Executive Order on Ensuring Responsible Development of Digital Assets.

According to the report, the United States needs to expand its “operational and capacity building efforts with international partners”. Additionally, the report suggested that the United States should increase information sharing between various jurisdictions. The report reads;

Strong international law enforcement cooperation will be essential to best position the United States and its partners to detect, investigate, prosecute, and otherwise disrupt criminal activity related to digital assets, and to overcome the unique obstacles posed by the features of these technologies to law enforcement efforts to combat their misuse,

Details of the Attorney General’s report

Worth noting, that the report was made in collaboration between the Department of Justice, Department of State, Department of the Treasury, Department of Homeland Security, Securities and Exchange Commission (SEC), and Commodity Futures Trading Commission (CFTC).

The report brought out the fact that crypto has brought people closer through faster, cheaper, and more reliable transactions. Moreover, the report highlighted more than ten challenges the investigation team is facing while dealing with crypto issues.

One of the notable challenges is listed as number B(2). Which states, “The speed and cross-border nature of digital asset transactions poses challenges to the timely collection of evidence and the effectuation of restraints and seizures of assets.”

The report also exacerbates the ongoing global geopolitical crisis fueled by the Russia-Ukraine war. Furthermore, countries are likely to get torn between personal security and surveillance orchestrated by the United States federal government.

Nevertheless, the United States has significant influence around the world, and therefore likely to shape future crypto global regulations. Moreover, most of the global currencies are backed by the United States dollar, which is the world reserve currency.

Worth noting, the report by DC’s Attorney General noted that the various United States agencies support the responsible use and development of digital assets. Thereby reiterating President Biden’s executive order on crypto assets. The report acknowledged the use of sophisticated tools to obfuscate crypto transactions related to criminals.

Bigger picture

The crypto industry has matured after surging through a decade full of economic crises. Among them include the 2008 financial crisis and the Covid-19 pandemic. Bitcoin has been adopted by two countries as legal tender. 

The macroeconomic factors have increased, thereby requiring a meticulous approach from any government. Remember, countries know that the crypto market is here to stay and thus the best policy environment wins.

The United States is preparing to roll out its CBDC to ensure the longevity of its success as a global reserve currency. As a result, cleaning up the crypto market of the bad players is a major milestone towards its CBDC goals.