The anonymity of cryptos is still poorly appreciated by regulators, because of the risks associated with it. Christy Goldsmith Romero, the commissioner of the CFTC, demonstrated this well during City Week. Discover the statements she made on the subject during a conference organized in London as part of this event.
US Should End Anonymous Crypto Transactions
Even though it was proven last year that crypto transactions are not truly anonymous, US regulators remain concerned. As proof, Christy Goldsmith Romero pointed out that anonymity in cryptos poses a threat to national security. She explained that this promotes illicit activities, quietly providing resources to criminals to fund cybercrime. The CFTC commissioner therefore believes that anonymous crypto transactions should be stopped.
To do this, Romero calls for a implementation of stricter government and industry controls on cryptos. “Fraud is a feature of digital asset markets, the human harm of which can be overlooked. It is essential that governments and especially industry address what makes cryptocurrencies so attractive for illicit finance, namely the benefits of anonymity.», supported the commissioner.
Addressing Anonymity: Proposed Measures for Crypto Regulation
It should be recalled that the United States previously banned the Tornado Cash crypto mixer for national security reasons. They found it dangerous for a platform to increase the anonymity of cryptos from different sources by mixing them before redistributing them. Also, Congress is working on new laws aimed at combating the anonymity of cryptos.
For the CFTC Commissioner, “it is possible for all cryptos to adapt to the changing economy“. “It is possible for all crypto companies to distance themselves from mixers and anonymity-enhancing technology while ensuring financial privacy for customersRomero pointed out.
US authorities seem convinced that the crypto industry makes it difficult to fight money laundering. They are therefore determined to put an end to this situation. In this regard, Reuters revealed that the Financial Stability Board (FSB) is considering final global measures for the regulation of cryptos. These should be released soon. It should be noted that the traditional financial system is also plagued by money laundering. It has been revealed that it smuggles over $1 trillion every year.
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