"Stop Cryptocurrency Money Laundering" US Announces Comprehensive Action Plan

[Asia Economy New York=Special Correspondent Joselgina] The Joe Biden administration is implementing a comprehensive action plan to prevent cryptocurrencies from being used for money laundering, terrorism, and other illicit activities. Additionally, it has decided to support the Federal Reserve (Fed) regarding the introduction of central bank digital currencies (CBDC).

On the 16th (local time), the White House announced a "Comprehensive Framework for the Responsible Development of Digital Assets," outlining these measures. This follows up on the executive order signed by President Biden in March. The plan focuses on tracking and responding to illegal uses of cryptocurrencies, such as money laundering and terrorist financing.

Accordingly, the administration will review the need for legislative amendments to explicitly apply laws such as the Bank Secrecy Act to services including digital asset exchanges and non-fungible tokens (NFTs). It will also consider strengthening penalties for unlicensed money transfers and conduct illegal financial risk assessments in areas like NFTs.

This move comes amid incidents where hacker groups linked to North Korea have stolen large amounts of cryptocurrency. The White House emphasized the need for a response, stating, "As seen in the recent theft by the Lazarus Group linked to North Korea, digital assets are becoming a source of funding for rogue regime activities."

Jake Sullivan, White House National Security Advisor, and Brian Deese, Director of the National Economic Council, stated in a separate announcement, "The government will implement a comprehensive action plan that includes priority measures to reduce major risks of cryptocurrencies, especially money laundering and terrorist financing."

The White House also recommended that regulatory agencies such as the U.S. Securities and Exchange Commission (SEC) take responsive actions against illegal practices in the digital asset space and conduct aggressive investigations to protect cryptocurrency investors, consumers, and businesses from fraud and theft.

Furthermore, regarding the introduction of central bank CBDCs, a cross-agency working group led by the Treasury Department will be launched to review the policy implications of CBDCs from a national security perspective, and the Fed will be supported in this effort.

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