US May Soon Start Cracking Down On Privacy-centric Cryptocurrencies
As a rule of thumb, cryptocurrencies offer users a certain level of anonymity while or receiving payments. However, there is a major difference between transactions of Bitcoin and altcoins like Monero. Transactions carried out with some coins such as bitcoin are entirely traceable while those done with altcoins like Monero, zcash and many others are almost impossible to trace, making such altcoins a viable tool for criminals.
A top official of the US Secret Service has noticed this and urged the Congress to formulate measures to curb the use of privacy-focused coins and coin mixers in the country.
Deputy Assistant Director of the US Secret Service’s Office of Investigation Robert Novy told the House of Representatives Financial Services Subcommittee on Terrorism and Illicit Finance that the increasing rate of use of cryptocurrencies by fraudsters “in criminal schemes that undermine the integrity of financial and payment systems, their use in cases of fraud, and their general use as a means of money laundering,” is a worrisome phenomenon for the US Secret Service.
In a testimony given by Novy, he made it clear to the higher authorities that it was becoming increasingly difficult for them to fight financial crimes committed using two particular altcoins. He said:
“Congress for help in preventing cryptocurrencies like Monero and zcash, which provide users with enhanced privacy and anonymity features, from being used for illicit purposes… We should also consider additional legislative or regulatory actions to address potential challenges related to anonymity-enhanced cryptocurrencies, services intended to obscure transactions on blockchains (i.e. cryptocurrency tumblers or mixers) and cryptocurrency mining pools.”