US Senators Push for Stronger Crypto Regulation to Combat Child Sexual Abuse Material Trade
Summary:
The US is ramping up efforts to combat the transaction of child sexual abuse material (CSAM) using cryptocurrencies. Senators Elizabeth Warren and Bill Cassidy are pressing for federal agencies to effectively trace crypto transactions linked to CSAM sales. They're demanding transparency from the Department of Justice (DOJ) and Department of Homeland Security (DHS) about their current technical capabilities. A Chainalysis study cited by the senators indicated growth in the use of cryptocurrencies for illicit CSAM trade, with traders frequently using 'privacy coins' like Monero for money laundering. The senators also posed six questions to clarify the capacity for detection and prosecution of these crimes.
The United States is initiating a clampdown on individuals involved in buying and selling child sexual abuse material (CSAM) facilitated using cryptocurrencies. Senators Elizabeth Warren and Bill Cassidy express the need for federal bodies to have full capacity in tracing crypto transactions connected with CSAM sales. They have called upon the Department of Justice (DOJ) and Department of Homeland Security (DHS) to disclose their present technical capabilities aimed at curtailing this crime. A Chainalysis report released in January 2024 was referred to by the senators, which indicated a growing trend of cryptocurrency use in the illegal trade of CSAM. Chainalysis discovered that the traders of child abuse content use 'mixers' and 'privacy coins' like Monero (XMR) to clean their profits and dodge law enforcement. There has been a significant rise in CSAM traders using instant exchangers to convert to Monero in recent years, according to Chainalysis. In a letter to Attorney General Merrick Garland and Secretary of Homeland Security Alejandro Mayorkas, the senators questioned the DOJ's and DHS's ability to recognise and prosecute these offenses. The letter stated current Anti-Money Laundering (AML) regulations and law enforcement strategies have problems in efficaciously detecting and preventing these crimes. The letter posed six questions, half of which were to assess the independent findings of federal agencies on cryptocurrency's ties with CSAM, and the remaining for identifying new tools required to recognise and prosecute those involved. The senators are expecting responses by May 10. Presently, the DOJ's ability to investigate crypto transactions has led to the charge against cryptocurrency exchange KuCoin and its two founders. On March 26, the DOJ accused KuCoin and its founders of running an unregulated money transmitting business and breaching the Bank Secrecy Act or BSA. As per the Justice Department, KuCoin's failure to enforce even basic Anti-Money Laundering regulations resulted in over $5 billion received and over $4 billion in suspicious and criminal funds transferred.
Published At
4/26/2024 11:39:59 AM
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