US Senator Elizabeth Warren shared her concerns about digital assets, labeling them a risk to global peace and protection. She underscored the misuse of crypto by law terrorists, criminals, and rogue nations to dodge sanctions and fund illegal actions.
On CNBC’s Squawkbox Newsmaker, Warren discussed the emerging risk she perceives in today’s world, cryptocurrency. She expressed her concern that cryptocurrency is being employed for harmful activities such as financing terrorism, facilitating drug trades, and aiding North Korea’s nuclear arms development, among other alarming uses.
“It is being used for terrorist financing, it is being used for drug trafficking, North Korea is using it to pay for about half of its nuclear weapons program,” Warren said. “We can’t allow that to continue.”
In a Senate Banking, Housing, and Urban Affairs Committee session, Warren shared shocking numbers. She stated that last year’s suspected illegal crypto operations added a massive $20 billion. This money often ended up funding a broad range of harmful criminal practices.
North Korea was a specific focus for Warren. Warren claimed that around half of their missile program’s financing, even nuclear weapons, was directly tied to crypto crime income. She also added that Israeli officials confirmed a similar situation with Hamas. They had obtained millions via crypto dealings, a big part from Iran.
Discussing these matters, Warren mentioned that law enforcement officials had suggested to the Congress to expand the anti-laundering laws that crypto companies follow the same rules as banks. Warren believes this step would stop cryptocurrencies from being manipulated for law-breaking actions.
US Senator Elizabeth Warren Challenging Crypto Lobbyists
However, Warren doesn’t agree with crypto lobbyists who say that digital money doesn’t need to follow Bank Secrecy Act rules. She thinks these rules should apply to crypto to keep our country safe.
In the same discussion, Warren asked Jamie Dimon, the head of JPMorgan Chase, why crypto is a popular financial tool for illegal drug dealers and rebel countries. He answered that he’s consistently been firmly against crypto because it’s partly anonymous, not entirely, since you can transfer money quickly. If it were up to him, he’d shut it down.
According to Senator Warren, applying AML rules to crypto is not just sensible but paramount for national security. She demanded prompt action from Congress, focusing on the urgent need to oversee the crypto industry.
“When it comes to banking policy, I don’t usually agree with the CEOs of multi-billion dollar banks. But enforcing anti-money laundering rules against crypto to protect national security is common sense & critical. It’s time for Congress to act.” Warren said.
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“The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.“
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