Bipartisan U.S. Senators Target Cryptocurrency Amid Terrorism Fears; Kazakhstan Blocks Unlicensed Exchanges; Ex-Binance CEO Ordered to Stay in U.S.
Summary:
A bipartisan group of U.S. senators has introduced legislation targeting cryptocurrency's alleged role in financing terrorism. Meanwhile, Kazakhstan has blocked almost a thousand unlicensed cryptocurrency exchanges in 2023, while investigations into illegal operations and money laundering are underway. Additionally, ex-Binance CEO Changpeng "CZ" Zhao has been ordered to stay in the United States until his sentencing in February due to flight risk concerns.
A bill has been put forward by several American senators from both political parties, aiming to address the possible use of cryptocurrency for funding terrorist activities. On another note, Kazakhstan has shut down 980 unregulated cryptocurrency exchanges in 2023 and has initiated nine probes into illicit operations and money laundering in the sector. Additionally, Changpeng "CZ" Zhao, Binance's ex-CEO, has been mandated to stay within the United States until his judgment in February.
Senators from both the Democratic and Republican parties have presented a bill to curtail the potential use of cryptocurrencies for financing terror. The Terrorism Financing Prevention Act was announced by Senators Jack Reed, Mark Warner, Mike Rounds, and Mitt Romney on December 7. This proposal extends sanctions to any entities that might be funding terrorist groups using either cryptocurrency or traditional fiat currency.
According to Senator Rounds, the Department of the Treasury must have suitable anti-terrorism tools to combat contemporary threats. The said Act aims to weed out terrorism by sanctioning foreign banks and digital asset firms found assisting them in these malicious acts. The bill further empowers the Treasury Department to ban transactions involving overseas digital asset facilitators under sanctions.
In other developments, the Financial Monitoring Agency of Kazakhstan has obstructed access to almost 1000 unlicensed crypto exchanges operating in the country in 2023. The Digital Assets Law, enacted in February the same year, discourages the creation and trade of digital currencies without acquiring a national license. Any transgressions have led to several significant international platforms becoming inaccessible to the Kazakh citizens.
Lastly, Binance's founder, Changpeng “CZ” Zhao, has been instructed to stay in America until his February sentencing. This decision is due to the fear that Zhao, holding significant wealth and property overseas, poses a high flight risk if allowed to return to the United Arab Emirates before the sentencing. A federal judge underscored that the prosecutors might not secure his return to the States if Zhao opts not to come back voluntarily.
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Published At
12/8/2023 10:14:41 PM
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