The fears that the United States Department of Treasury was close to cracking down on Bitcoin (BTC) and cryptocurrencies, have been dismissed by Kristin Smith, the director of the Blockchain Association.
It is a fact that there have there are unfounded facts that financial institutuons using cryptocurrencies will face money laundering charges over the weekend and this rumour was all over the social media.
With the market capitalization dropping over $240 million as Bitcoin slid to $52,000, the report emerged during a period of massive selloffs in the crypto space.
It has been said that it within the prerogative of the Department of Justice’s remit to charge the companies with money laundering. according to the interview with Smith on CBNC.
Janet Yellen, the secretary of the U.S. Treasury, is a noted crypto critic, who in February characterized the apparent misuse of cryptocurrencies for illegal activities as a growing concern.
Meanwhile, several studies show the criminal usage of cryptocurrencies accounts for a minute proportion of global crypto commerce. Indeed, Michael Morell, a former acting director of the Central Intelligence Agency, recently published a paper showing that the broad generalization of digital currencies as conduits for criminal financing was exaggerated.
Morell’s paper also concluded that blockchain forensic tools are sufficiently robust to detect illicit crypto transactions.
Commenting on the efforts by crypto stakeholders to remedy the disinformation in Washington regarding the industry, Smith remarked that several market actors are contributing more resources in positive lobbying efforts on the Hill.