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Deputy Treasury Secretary Wally Adeyemo issued a stark warning to cryptocurrency companies, stating that the U.S. government will sever their ties with the broader U.S. economy unless they take decisive actions to prevent and report illicit money flows. Adeyemo emphasized the urgency for crypto companies to enhance measures against the flow of illicit finances, emphasizing the potential risks to the United States if the sector remains inactive.
During an event hosted by the Blockchain Association, Adeyemo underscored the government’s commitment to leveraging all available tools to safeguard national security, citing actions taken in the past year as a clear message. The Biden administration recently requested new legislation from Congress, seeking authority for the Treasury to regulate cryptocurrency marketplaces used by entities deemed illicit by the U.S. government.
This move follows October’s issuance of sanctions targeting funding for the Palestinian militant group Hamas, with a Gaza-based cryptocurrency exchange among the entities singled out. The warning comes on the heels of Binance’s Chief Changpeng Zhao pleading guilty to violating U.S. anti-money laundering laws in a $4.3 billion settlement. Zhao stepped down as CEO, acknowledging mistakes, as prosecutors accused Binance of breaking anti-money laundering and sanctions laws. The exchange allegedly failed to report over 100,000 suspicious transactions involving organizations identified by the U.S. as terrorist groups, including Hamas, al Qaeda, and the Islamic State of Iraq and Syria. Binance responded, stating its commitment to enhancing platform safety and security.
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