03 December 2016

US Attorney General floats tighter regulations for virtual currencies

09 April 2014  |  3580 views  |  0 Washington Capitol hill

The US Attorney General has raised the prospect of applying money-laundering and know-your-customer controls to virtual currency transactions as a means to clamp down on illegal activity.

Testifying before a US House Committee on the Judiciary, Attorney General Eric Holder, said that the emergence of digital currencies such as Bitcoin poses challenges for law enforcement given its appeal to the criminal fraternity.

He says his office is working with financial regulators to get to grip with the issues and the Department is "committed to innovating alongside this new technology in order to ensure our investigations are not impeded by any improvement in criminals' ability to move funds anonymously".

As virtual currency systems develop, Holder told the Committee, it will be "imperative to law enforcement interests that those systems comply with applicable anti-money laundering statutes and know-your-customer controls".

Holder's intervention in the debate comes after various US state departments have proposed the imposition of tighter controls and licenses for Bitcoin businesses, raising fears that over-regulation might cripple the nascent industry.

In a recent Florida speech to bankers, Jennifer Shasky Calvery, director of Treasury's Financial Crimes Enforcement Network, noted: "The idea that illicit actors might exploit the vulnerabilities of virtual currency to launder money is not merely theoretical."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Wall Street industry group swallows Bitcoin red pill

Wall Street industry group swallows Bitcoin red pill

31 March 2014  |  14341 views  |  0 comments | 13 tweets | 5 linkedin
US tax man says bitcoin is property, not currency

US tax man says bitcoin is property, not currency

26 March 2014  |  4372 views  |  0 comments | 4 linkedin
Singapore to tackle money laundering risks in bitcoin transactions

Singapore to tackle money laundering risks in bitcoin transactions

13 March 2014  |  4901 views  |  0 comments | 5 tweets | 3 linkedin
Bitcoin not a currency but has tech potential - Goldman Sachs

Bitcoin not a currency but has tech potential - Goldman Sachs

13 March 2014  |  7778 views  |  7 comments | 10 tweets | 5 linkedin
New York regulator starts accepting bitcoin exchange applications

New York regulator starts accepting bitcoin exchange applications

12 March 2014  |  8480 views  |  0 comments | 6 tweets | 4 linkedin
Forget bitcoin, let's ban hard cash urges US congressman

Forget bitcoin, let's ban hard cash urges US congressman

07 March 2014  |  6663 views  |  6 comments | 16 tweets | 15 linkedin
US state regulators investigate virtual currencies; Mt. Gox chief quits Bitcoin Foundation

US state regulators investigate virtual currencies; Mt. Gox chief quits Bitcoin Foundation

24 February 2014  |  6268 views  |  1 comments | 7 tweets | 6 linkedin

Related blogs

Create a blog about this story (membership required)
Visit VocaLink.comFind out morehttp://www.financialcrimerisk.fiserv.com/aml?r=finextra

Top topics

Most viewed Most shared
Royal Mint to issue digital goldRoyal Mint to issue digital gold
6088 views comments | 22 tweets | 21 linkedin
ING pulls plug on P2P payments app TwypING pulls plug on P2P payments app Twyp
5444 views comments | 16 tweets | 15 linkedin
R3 and Calypso to develop blockchain trade confirmation systemR3 and Calypso to develop blockchain trade...
5353 views comments | 13 tweets | 12 linkedin
EBA told that tougher authentication will have a "chilling" effect on single marketEBA told that tougher authentication will...
5327 views comments | 18 tweets | 20 linkedin
UK challenger bank Masthaven opens for businessUK challenger bank Masthaven opens for bus...
5283 views comments | 15 tweets | 13 linkedin

Featured job

to Six-Figure Base, Bonus, Benefits
London, UK

Find your next job