US Regulator Sounds Alarm on Anonymity in Crypto: Calls for End to Illicit Finance
According to Christy Goldsmith Romero, a commissioner at the U.S. Commodity Futures Trading Commission, anonymity in cryptocurrencies is allowing them to finance illegal activities, posing national security risks that must be addressed. Cryptocurrencies are being used to finance cybercrime that targets individuals, companies, hospitals, and critical infrastructure. Romero stated at a conference in London that it was imperative to address the lack of visibility in cryptomarkets to combat fraud, which is a hallmark of digital asset markets. She added that compliant crypto companies must show they have internal controls to prevent money laundering and terrorist financing and should not use "mixers" or software tools that effectively anonymize users. Last year, the US imposed sanctions on virtual currency mixer Tornado Cash, alleging it helped hackers launder proceeds from cyber crimes, including those from North Korea.