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Secret Service warns Monero and Zcash Privacy Crypto Coins need legal action

The secret service warns that anonymous cryptos must be addressed

A senior intelligence official recently warned the US Congress that desperate and immediate actions must be taken to prevent certain cryptocurrencies from being used in profoundly illegal activities. Specifically, the official deplored the use of digital currencies focused primarily on providing full privacy to their users, such as Monero and Zcash. These currencies were initially created in order to address the main confidentiality issues on the blockchain of the most popular currencies.

The Secret Service Investigation Bureau has always been primarily involved in financial crime, as their original purpose in creating was to prevent counterfeiting. As a result, it only makes sense for the organization to highlight cryptocurrencies that provide ample security in their anonymity to their users. These currencies are used in the trade in counterfeit money on huge exchanges on the dark net markets.

Robert Novy is the deputy director added to the United States' Secret Surveillance Office. In a report to the Congress, he noted that the legislative body should "consider further … actions to address potential challenges" related to "cryptocurrencies enhanced by anonymity". He also stressed the need for more regulation of some blockchain-based tools, such as tumblers and mixers, which are specifically used to try to make transactions anonymous.

It was not only in his interest to further explore the legislative solutions for the original problems of the new anonymous blockchain patrons. Greg Nevano of the Immigration and Customs Enforcement Department (ICE) reiterated his concerns, finding that monitoring the most recent cryptocurrencies is becoming increasingly difficult, especially with the plethora of new features and tools designed to mask the nature of user transactions.

Legislative concerns

Novy stressed that legislators should assign additional powers to agencies such as their own in order to take action against and override the powers of organizations or companies that are working to hinder existing customer data and financial information surveys.

The topics were heard during an 'official hearing on virtual currencies. The hearing was held by a subcommittee of the Chamber's Financial Services Committee. While the crypto community has maximized its application in the financial sector over the past three years, this event shows that the government has not forgotten the deeply rooted criminality that underlines many cryptocurrencies and their applications.

Politicians have pointed out that the use of crypts for illicit purposes continues to be "one of the biggest emerging threats" to US security in the coming years. This sentiment comes from representative Robert Pittenger, a representative of the state of North Carolina.

The control division of the FinCEN application was also present during the meeting. The associate director of the organization, Thomas Ott, pointed out that billions of dollars in "suspicious activities" come from virtual currencies that focus on the anonymity and privacy of the owners.

Persistent global problems

Crypto issues are not limited to the United States. Ott referred to the prominence of regulatory efforts in other countries, stating that we have seen "great strides" to address "the regulatory gap" in countries such as "Australia, Japan and South Korea".

Going forward, reflective regulation may require the United States to inspect other countries of the world, taking pages from their book in order to develop a comprehensive way to regulate what balances the government's interest in regulation with the need for freedom. innovative of the industry.

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