Benzinga - Senator Elizabeth Warren (D-MA) raised concerns about the illicit use of cryptocurrency during a recent Senate Committee on Armed Services hearing.
Highlighting specific threats like terrorism financing and ‘pig butchering’ scams, Senator Warren emphasized the need for stricter regulations to combat these criminal activities.
Pig butchering scams, where fraudsters build trust with victims before stealing significant sums of money, have become a growing concern within cryptocurrency.
According to General Paul J. LaCamera, who commands United States Forces Korea, these scams defrauded over 40,000 Americans and resulted in a staggering $3.5 billion loss in 2023 alone, The Block reported.
“Crypto is how this stuff is financed,” Senator Warren said during the hearing on March 21.
She elaborated on the broader threats posed by cryptocurrency, including its potential use by “rogue states” and “terrorist organizations” to fund illegal activities.
Senator Warren has proposed the Digital Asset Anti-Money Laundering Act to address these concerns.
This bipartisan bill aims to curb crypto-related crime by strengthening U.S. financial regulations and implementing stricter know-your-customer (KYC) protocols for cryptocurrency transactions.
The debate around cryptocurrency regulation will likely continue as the digital asset class evolves.
Those seeking a deeper understanding of cryptocurrency’s intricacies and impact on the financial landscape can attend Benzinga’s Future of Digital Assets conference on Nov. 19.
This industry event will convene leading figures from the cryptocurrency and blockchain space to explore regulatory developments, investment opportunities, and the future of digital finance.
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