To combat the use of cryptocurrency for illicit behaviour, the Justice Department has issued a study urging more international law enforcement collaboration.
International collaboration is being urged in a new Department of Justice study to combat the illicit exploitation of digital assets. Their ideas include assisting other countries to build the required infrastructure to investigate cybercrime, strong information exchange, and standard international rules, among other things.
After President Joe Biden’s Executive Order on digital assets from March 2022 was issued, the U.S. Department of Justice (DOJ) responded to it yesterday.
For the purpose of deterring and prosecuting criminal activity involving digital assets, 58 pages of a report titled “How to Strengthen International Law Enforcement Cooperation” was produced in collaboration with the departments of State and Treasury as well as the departments of Homeland Security (DHS), the Securities and Exchange Commission (SEC), and the Commodity Future Trading Commission (CFTC).
When it comes to money laundering, ransomware, terrorist funding, fraud and sanctions evasion, cryptocurrencies are seen as a convenient vehicle because of their “perceived pseudonymity,” even if the United States “supports the responsible use and development of digital assets.” Consumers and retailers throughout the world have been targeted by criminals using information asymmetries and anonymity-granting technologies, the DOJ says.
As the research points out, “uneven and frequently insufficient regulation” leaves the US and worldwide financial systems vulnerable to states with less stringent regulatory standards and enforcement. According to the research, one of the most difficult problems facing law enforcement authorities is the practice of criminals participating in “jurisdictional arbitrage.”
The Department of Justice (DOJ) has called for international collaboration in the fight against the illegal usage of cryptocurrencies. Improving cross-border collaboration by assisting other countries to create the necessary infrastructure, exchanging “robust” information, and creating international regulatory norms to decrease the likelihood of jurisdictional arbitrage are all recommended solutions.
Binance has been used by North Korean hackers, Russian drug traffickers, and West European organised criminal organisations to launder more than $2.35 billion since early 2018, according to a Reuters investigation.
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