United States Legislation Targets Crypto Sex Trafficking
The United States Federal Government has always had a vested interest in the regulation of digital, decentralized currencies. In the beginning days of Bitcoin, the currency’s heavy use in underground black markets drew both the interest of the public and the scrutiny of regulators. And as the cryptocurrency grew up, it became host to an all new type of issues: financial crimes.
Thousands of government operations all over the country have put away those who commit financial crimes on the blockchain, taking on an entirely new industry through a variety of tactics and with the use of extensive research. Without the creation of research teams and working groups within congressional regulatory bodies all over the country, it would have been impossible for the government to effectively take action against the criminals giving a bad name to the entire crypto community.
But the new interest in financial crimes in the blockchain sector does not mean that traditional, more dangerous and harmful crimes are not rampant in the largely disorganized and entirely anonymous public ledgers which now dominate the many parts of the financial community. In their newest move, the U.S. Congress has proposed a bill meant to allow the body to study how cryptocurrencies might be used in global sex trafficking schemes.
Though the bill has not yet been passed and faces a long and difficult battle to ratification by the House, the Senate, and President Donald Trump, information currently available reveals a host of concerns that the government has regarding the role of cryptos in several major trafficking operations happening sometimes inside of U.S. borders.
Core Aspects of the Bill
The bill would task the Comptroller General of the United States to research how the virtual currencies are used to “facilitate the financing of goods and services” which are known to be associated with the sex trafficking industry. Additionally, the task force created by the General is supposed to analyze how the currencies are used to exchange drugs.
Juan Vargas, the representative who first sponsored the bill while it was introduced to the Congress this year, created the “FIND Trafficking Act.” The act has been hailed as a way for enforcement agencies to gain access to enhanced methods to track down and respond to issues of sex trafficking involving anonymous digital currencies.
The Comptroller General is also tasked with reporting relevant information to the Committees for banking and housing and urban affairs, as well as the Committee on Financial Services. The General is to report information regarding both the outcome of the study and suggestions for legislative and regulatory needs moving forward with the important investigations.
Responsible regulation of cryptocurrencies in the modern era requires governments to respond to increasing safety and health threats within the industry without hurting the creative nature of the blockchain innovations which continue to characterize its development.
Legislation such as the FIND Trafficking Act is essential to the long-term responsible regulation of the crypto market within the United States. These hyper-specific laws address specific problems without creating dangerous precedents of over-regulation.