Home News Bitcoin US House Unanimously Passes Bill To Counter Illicit Cryptocurrency Use

US House Unanimously Passes Bill To Counter Illicit Cryptocurrency Use

June 28, 2018 12:48
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The US House of Representatives passed a bill to fight illegal use of cryptocurrencies that include bitcoin, dash, monero and zcash. The bill comes in the wake of the Secret Service presenting a testimony to the Congress, requesting help in stopping these activities.

The testimony was presented by Robert Novy, who is currently serving as the Deputy Assistant Director, Office of Investigations at the United States Secret Service. Novy had said, “The Secret Service’s primary concern regarding this topic is digital currencies’ use 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.”

He had added that they 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.

The Bill numbered, HR 6069, says that, “According to the Drug Enforcement Administration (DEA) 2017 National Drug Threat Assess1ment, transnational criminal organizations are increasingly using virtual currencies.” The Bill also said that virtual currencies have become a prominent method to pay for goods and services associated with, illegal sex trafficking and drug trafficking, which are, two of the most detrimental and troubling illegal activities facilitated by online marketplaces.

The Bill co-related the use of virtual currencies with activities such as money laundering, drugs trafficking, sex trafficking and other illegal activities in the darknet marketplace.

According to news. Bitcoin, Rep. Keith Rothfus said, “Illicit markets where drug and human trafficking take place are constantly evolving, especially on the dark web…Cryptocurrencies can mask traffickers’ transactions, affording them a level of anonymity when conducting illegal activities.” He added that “This bipartisan legislation will help the government expose new criminal methods to move illicit funds, and provide ways to stop them.”

Although the Bill was passed after the US Secret Service made its, appeal it should be noted that the Secret Service had not made a plea for an outright ban. The agency had asked the Congress for solutions on how to cut down on illicit activities related to cryptocurrencies.

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