Like many industries, the crypto industry is also not free from vices that affect its overall functioning and output. Therefore, certain checks and steps are necessary to prevent it from degrading to a higher extent. In the past few years, several such steps have been taken to keep the crypto industry in check. However, there have been various such instances wherein crypto entities have also become a matter of concern.
In a recent report, the assistant secretary of the Treasury Department has said that putting sanctions on crypto miners can be of huge help. It can prevent the evil systems prevalent in it such as money laundering. It can spread across various countries such as North Korea, Russia, and Iran.
How can sanctions on cryptocurrency mixers be of help?
Elizabeth Rosenberg stated in a recent report that the enforcing of sanctions on entities such as crypto miners can be of huge help to the Government. It can be the best way to prevent foreign countries from making use of the crypto platform for various illegal activities. She, being the assistant secretary for terrorist financing and financial crimes came up with this suggestion as a preventive measure to make the digital currency platform a safer space for all.
Further comments on the crypto mixer sanction
There have been various steps taken towards the fulfillment of the above-mentioned goal. In one of the recent hearings of the Senate Banking, it has been quite vividly elaborated how the inclusion of various crypto mixers in the group of Specially designated nationals can work in favor of the US in letting foreign countries know the steps it is taking to prevent exploitation or breach of sanctions. These crypto mixers include blender.io, Tornado cash, etc. It is a step that has been deemed necessary to an extent that it has become almost mandatory.
Role of sanctions in preventing money laundering
It has been also been stated by Rosenberg that with the use of sanctions if prevention of usage of mixers for illicit activities can be encouraged, then it should and must be used likewise. It would be the best way to indicate or represent that the entity does not respond well to any sort of money laundering and prevent criminals from engaging in such activities. Does not matter which group or country they belong to, a criminal should be taken action against without any further consideration.
Some more information on the sanction on crypto mixers
Even though there have been several oppositions to this particular decision, it has still stood strong and held its ground. Its motive and aim have been questioned time and again for it, as per the views of the opposition, could bring about disastrous consequences. Several well-reputed entities like Coinbase even went as further as threatening to charge a lawsuit against the government authority for the step they have taken, especially for imposing sanctions on Tornado cash.
This particular government entity has directed its initiative towards those trying to use various Bitcoin assets and aimed at different Bitcoin addresses. These addresses included groups from Russia as well as Iran. However, it later made it clear that the Treasury does not aim at putting any sort of regulations on users which would affect the sharing of Tornado Cash’s code on different websites. This declaration was made by the treasury in between the unrest and lack of clarity that is prevalent among crypto users for some time now. Needless to say, the crypto market being volatile is susceptible to changes that may or may not be accepted by each and everyone associated with it or affected by it.