According to the US Department of Justice, it is more difficult to prosecute crimes committed with cryptocurrencies than with fiat money. The government highlights that blockchain platforms keep permanent records of transactions on distributed ledger technology publicly available on the Internet.
Merrick Garland, the US attorney general, recommended that President Joe Biden works on strong international cooperation to regulate Bitcoin (BTC) and other cryptocurrencies.
The message from Garland is part of a recent report by the US Department of Justice in response to the Executive Order issued by Biden.
The government agency raised that internal US organizations and foreign entities responsible for preventing crimes must work in a coordinated manner to regulate the ecosystem.
They also mentioned the issue of crimes committed with cryptocurrencies based on their higher adoption.
The Attorney General believes it is crucial to share more information with foreign law enforcement agencies. He told President Biden that better collaboration would help avoid duplicating efforts, which wastes investigative resources.
According to Garland, the Executive Order issued by Biden states that the growing use of crypto assets affects investors, consumers, and businesses. It also claims that it increases the risk of money laundering, ransomware, terrorism financing, fraud, theft, and sanction evasion.
The Department of Justice added that it has begun to work cooperatively with the State Department and the Treasury Department. Other agencies include the Department of Homeland Security, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC).
They say they will direct their efforts at determining how to strengthen international law enforcement cooperation best. They seek to expand operational capacity and close regulatory gaps between jurisdictions.
International Cooperation to Help Fight Crimes Involving Cryptocurrencies
The report indicates that international cooperation would help overcome the obstacles posed by the characteristics of Bitcoin and other cryptocurrencies. That way, it would be possible to intensify law enforcement efforts and combat their misuse.
The Attorney General and the Department of Justice consider that an international strategy is crucial for detecting, investigating, prosecuting, and disrupting cryptocurrency-related criminal activities.
They explained that crimes committed with cryptocurrencies are much more difficult to prosecute than those involving fiat money.
They pointed out that criminal actors exploit innovation, decentralization claims, and anonymity features of cryptocurrencies. The report states that they commit crimes with crypto assets much faster as they avoid traditional financial intermediaries.
However, they highlight the advantages of blockchain platforms, as they keep permanent records of transactions on distributed ledger technology publicly available on the Internet.
That provides further opportunities for law enforcement officers to track money, which is impossible with traditional financial systems.
The response from the Department of Justice is among the first from US agencies to the presidential request.
In March, Biden required federal agencies to examine the risks and opportunities that cryptocurrencies represent to the country. He sought to determine how they affect the national security of the United States and its economy.
By Alexander Salazar
