Former CCIPS Michael DuBose Says US Must Match EU’s Crypto Regulations
The US Must Emulate Europe’s Lead on Crypto Regulation, Says Michael DuBose
While the EU has been more proactive in the regulation of the crypto industry, the US seems to be lagging behind. Now Michael DuBose, who is the former head of Computer Crime and Intellectual Property Section at the US Department of Justice, is urging the US to be tough on crypto. This way, the US will not find itself schemed out of this futuristic innovation.
In an article he wrote for the Press Herald, Mr. DuBose, who is the president of Crystal Blockchain Inc., said that US policymakers needed to reassess existing laws. According to him, regulators needed to examine the idea of creating fresh laws that would be applied to crypto. He said that that the EU has already begun to take steps in this direction. However, the EU would soon require assistance in managing this borderless technology.
The EU Needs Help
DuBose was clear that the EU would not be able to bring about change without assistance from other governments. The most important voice globally would be the US. For US policymakers, the issue would not be whether they would ban crypto or create regulation. Rather, the issue would be remodeling existing fiat currency laws to apply to crypto.
He added that the Financial Crimes Enforcement Network under the Treasury Department needed to act on behalf of the US. This is because it has access to exchanges in the US and high-quality investigative software developers. He noted that there was a need to acclimatize with the limits and capabilities of crypto to make the right policies.
Anonymity Is Not An Issue With Bitcoin
DuBose also talked about the issue of anonymity with crypto. He said that Bitcoin offered pseudonyms, not anonymity. It was easy to trace where Bitcoin was headed from one wallet to another, unlike Zcash, Monero, or Dash. In fact, he said that with the right software, most cryptos were easier to trace that fiat.
He said that it was time to dispense with the notion that all uses for crypto were illegal. According to him, this misperception came about because crypto was first utilized on the darknet. Besides that, the belief that crypto was anonymous was what had led to this misconception of crypto being used for crime.
What Recent Studies Reveal
In recent times, the Parliament had conducted a study to examine the use of crypto in sponsoring terrorism. It was realized that the sponsorship of terrorism claim was false. This was because most terrorists wanted to keep away from technology, which is easy to track. Besides that, fraudsters have begun to realize that bitcoin is not a great tool for crime. Enforcement agencies such as Interpol have complex tools, which can track down Bitcoin crime.
The study also showed that there was a need for more regulation, which would discourage the widespread use of crypto for crimes. Crimes for which crypto has been used include ransomware attacks, money laundering, and other cybercrimes. Most notable is an amendment to European Anti-Money Laundering Directive. It now places wallet provider and crypto exchanges under the same laws as banks and other financial institutions.