US Treasury Department has sought comments from the public and cryptocurrency community on the exploitation of digital assets for illicit purposes and asked for suggestions to address the issues.
<h2>“Request For Comment” by US Treasury</h2>
The Treasury Department <a href="https://public-inspection.federalregister.gov/2022-20279.pdf">issued</a> a "request for comment" on Monday, outlining more than 20 inquiries and requesting the general public to clarify whether it has "comprehensively defined the unlawful financing risks" connected to cryptocurrencies. It also noted that several federal officials, such as the Treasury Secretary, Attorney General, Homeland Security Secretary, Director of National Intelligence, and Secretary of State, would develop a synchronized action plan to confront the potential national security threat.

According to the notice, the risks of offenses like money laundering, financing for terrorism and nuclear proliferation, fraud and theft schemes, and corruption are escalated by the expanding use of digital assets in financial activities. It is linked to U.S. President Joe Biden's executive order on cryptocurrencies.
<h2>Principal Policy Objectives</h2>
The notice refers to six "principal policy objectives," including:
<ul>
 	<li>Consumer Protection</li>
 	<li>Financial Stability</li>
 	<li>Mitigating Illicit Finance</li>
 	<li>Promoting U.S. leadership in the global financial system, supporting affordable financial services</li>
 	<li>Encouraging responsible creation of digital assets</li>
</ul>
<h2>Risk of Digital Assets</h2>
In a statement, Brian Nelson, the Under Secretary for Terrorism and Financial Intelligence stated that without sufficient controls and enforcement of current laws, digital assets might constitute a significant risk to national security by enabling illegal funding, such as money laundering, cybercrime, and terrorist acts. He further stated that:
<blockquote><em>“As we work to implement the Illicit Finance Action Plan, hold bad actors accountable and identify potential gaps in existing enforcement, we look forward to receiving the public’s input on this urgent work."</em></blockquote>
<h2>US Treasury Sanctions Russian Paramilitary Group</h2>
Recently, the US Treasury added <a href="https://www.cryptoknowmics.com/news/us-treasury-sanctions-russian-paramilitary-group-to-fund-ukraine-war">22 people</a> and two organizations to its list of Specially Designated Nationals, thereby barring U.S. residents and companies from doing business with them, according to a notice published by the Treasury. According to the government department, several individuals were on this list who supported Russian government objectives in Ukraine. Sanctions against Task Force Rusich, a neo-Nazi paramilitary group, included two cryptocurrency addresses for Bitcoin (BTC), two for Ether (ETH), and one for Tether (USDT).

US Treasury Dept. Requests Public Feedback on Crypto's Role in Illegal Finance

The public is invited to share their opinions on exploitation of digital assets for illicit purposes and how US Treasury Department should address the issue

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US Treasury Dept. Requests Public Feedback on Crypto's Role in Illegal Finance

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