Crypto tumblers, exchanges under microscope as DOJ launches new task force


The White House, under the Biden-Harris administration, introduced a five-pillar strategy to fight corruption as part of the core US national security interest. The strategy involves the creation of a new task force to tackle potential illicit activity on crypto exchanges and other services that can serve as an avenue for money laundering.

In an effort to strengthen the enforcement of anti-money laundering (AML) regulations, as well as criminal and civil laws, the federal government plans to implement new tools to investigate and prosecute money laundering offenses. . Specifically for cryptocurrencies, “PILLAR THREE: Holding Corrupt Actors Accountable” highlights:

“DOJ [Deparment of Justice] will use a newly formed task force, the National Cryptocurrency Enforcement Team, to focus specifically on the complex investigations and prosecutions of criminal cryptocurrency abuses.

The White House mentioned that the National Cryptocurrency Enforcement Team would be particularly responsible for overseeing “crimes committed by virtual currency exchanges, mix-and-tumble services, and money laundering infrastructure players.”

The DOJ also extended subpoena power for certain financial records kept abroad while imposing new disclosure requirements for beneficial owner information. The department also plans to encourage whistleblowers to share information that leads to the identification and seizure of illicit proceeds.

Related: House committee announces crypto CEOs to testify at December 8 hearing on digital assets

Along with the latest White House initiative, Representative Maxine Waters, chair of the House Committee on Financial Services, invited CEOs of eight major crypto companies to discuss digital assets and the future of finance, to be held on December 8.

As Cointelegraph reported, CEOs of Circle, FTX, Bitfury, Paxos, Stellar Development Foundation, Coinbase and Coinbase Global CFO will attend the committee hearing.