[Bitcoin Now] Below 40 Million Won... US Treasury Department Takes Action to Combat Cryptocurrency Crime

Financial Crime Enforcement Network under the Treasury Department "Concerns over Cryptocurrency Abuse Crimes"
Famous US Hedge Fund Approves Cryptocurrency Trading

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has fallen below 40 million won. This is interpreted as being adversely affected by the Financial Crimes Enforcement Network (FinCEN) under the U.S. Department of the Treasury prioritizing the resolution of crimes related to money laundering and terrorist financing using cryptocurrencies.

According to the domestic cryptocurrency exchange Upbit, as of 1:56 PM on the 1st, Bitcoin recorded 39.93 million won, down 1.82% compared to the previous day. It had risen to 41.83 million won at 9:37 AM the previous day but has been on a downward trend since then.

The U.S. financial authorities' announcement of active intervention in crimes abusing cryptocurrencies acted as a negative factor. On the 30th of last month (local time), FinCEN issued a statement presenting a priority list of anti-money laundering and counter-terrorist financing tasks under the Biden administration. The list included ▲cybercrimes related to cryptocurrency and cybersecurity ▲terrorist financing ▲fraud ▲transnational criminal organization activities ▲drug trafficking ▲human trafficking ▲corruption ▲funding of mass atrocities. FinCEN stated, “The Treasury Department is concerned about crimes abusing cryptocurrencies such as cyber financial crimes and ransomware attacks,” and “U.S. financial authorities plan to announce regulations requiring the integration of these eight tasks into their own anti-money laundering programs.”

The Treasury Department has long been concerned that cryptocurrencies could be used for crimes. On May 20 (local time), the Treasury issued guidelines requiring all cryptocurrency transactions exceeding $10,000 (approximately 11.32 million won) to be reported to the IRS. The reason is to prevent illegal activities including tax evasion. Earlier this year, Treasury Secretary Janet Yellen criticized, saying, “Cryptocurrencies are mainly used for illicit finance.”

Meanwhile, the famous U.S. hedge fund Soros Fund is showing interest in investing in Bitcoin. According to U.S. economic media Bloomberg on the 30th of last month, Don Fitzpatrick, Chief Investment Officer (CIO) of Soros Fund, approved trading cryptocurrencies such as Bitcoin within the funds under management. Additionally, Soros Fund is reportedly considering acquiring unlisted shares of companies based on blockchain technology.

Soros Fund is a well-known hedge fund managing assets worth $22 billion and has shown great interest in Bitcoin since the past. In March, CIO Fitzpatrick stated in an interview with Bloomberg, “Considering gold price fluctuations, gold seems to be losing its leadership in the market,” and “this is because Bitcoin is drawing investors away from gold.” Soros Fund has already invested $200 million in the cryptocurrency investment firm New York Digital Investment Group (NYDIG) along with financial companies such as Morgan Stanley and Stone Ridge.

This content was produced with the assistance of AI translation services.