- Janet Yellen, the potential U.S. Secretary of Treasury under Biden’s administration, has shed light on the alarming concern over the illegal utilization of cryptocurrency to finance terrorism.
- Yellen raised this point during the Senate Finance Committee hearing on January 19, 2021
- Previously, Yellen has been dismissive of Bitcoin and crypto during her term as Former Federal Reserve Chairman and even afterward.
Janet Yellen, the potential nominee to become the Secretary of the U.S. Treasury Department under President-elect Joe Biden’s administration, spoke about the increasing concern over cryptocurrency financing of terrorism.
Crypto Used For Illicit Financing of Terrorism
During a discussion about her foreseen selection as the U.S. Secretary of Treasury at the Senate Finance Committee hearing on January 19, Janet Yellen mentioned that the country must take action against the rising use of various instruments in militant and terrorism financing. She highlighted the role played by cryptocurrency in funding various terrorist activities. Yellen has formerly served in office as the Federal Reserve Chairman.
While answering a question raised by Senator Maggie Hassan about crypto funds being used by terrorists, Yellen outlined the requirement to change the means through which technology-driven currency is being incorporated into funding terrorism. She said that the country must ensure that all strategies for managing such issues must be aligned with the advancements taking place in the digital currency industry. Hassan had posed a question regarding the provision included in 2020’s National Defense Authorization Act, which suggests counter-checking measures how terrorist organizations can utilize novel financial technologies to raise money and acquire funding.
Yellen Unwilling To Over-Regulate Crypto Despite Being A Skeptic
In the past, Yellen has made her perception of the cryptocurrency extremely clear. During a fintech oriented forum in 2018, she outrightly mentioned that she is not a Bitcoin fan. The reasons behind her opinion were attributed to the high risk that burdens investors, the extreme price volatility of digital currency in the market, and the threat of attacks and hacking, which has caused significant losses to crypto traders in various instances.
However, Yellen asserted that she would not be over-regulating the crypto industry. After assuming her office role, she will be looking over numerous proposed measures and regulations made by the Financial Crimes Enforcement Network. This will be inclusive of the recently suggested regulation by FinCEN, which proposes the collection of personal details such as phone numbers and residential addresses of those users who own private digital wallets. This mandate has been received with extreme criticism by the crypto industry.
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