US regulators are increasing scrutiny of the crypto industry. The Federal Bureau of Investigation (FBI) is creating a specialized team dedicated to digital assets called the Virtual Asset Exploitation Unit (VAXU). Bitcoin advocates have expressed concerns about the FBI’s plans.
Self-preservation could help overarching crypto regulation, says Bitcoin proponent
The prospect of increased scrutiny of crypto has upset and aroused suspicion of crypto proponents. Dennis Porter, a podcaster and avid supporter of Bitcoin, has said the FBI’s plan is highly suspicious.
According to Porter, the FBI is essentially trying to learn how to remove Bitcoin from holders. This highly exposed crypto held on a centralized exchange is at risk. One possible way to stay out of the FBI’s reach would be to keep someone’s Bitcoin in-house, Porter adds.
The FBI Is Trying To Learn How To Get Your… #Bitcoin† If that doesn’t deter you from taking your coins off the exchanges, then I don’t know what does.
— Dennis Porter (@Dennis_Porter_) February 17, 2022
His concerns stem from comments made at the Cyber Security Conference in Munich by US Deputy Attorney General Lisa Monaco. The DOJ official revealed that the new unit will eventually be able to detect and seize illegal cryptocurrencies. Monaco said the unit will include crypto experts to begin with and have the resources to conduct blockchain analysis.
She revealed that the new FBI team will work in tandem with the Department of Justice’s (DOJ) National Cryptocurrency Enforcement Team that was established some four months ago. The partnership will help tackle rampant crimes such as ransomware attacks and digital extortion in the crypto space, she added.
The currency may be virtual, but the message to businesses is concrete: If you report to us, we can track the money, Monaco said.
The FBI and Justice Department’s past efforts to tackle crypto-related cybercrime are bearing fruit. In two cases last year, the organizations were able to seize crypto-ransomware payments worth $2.3 million and $6.1 million, respectively, with five arrested in the second case. This year, the DOJ made the largest financial repossession in history with a chargeback of $3.6 billion worth of Bitcoin stolen from Bitfinex in 2018.
Crypto regulation is tightening internationally
During the conference, Monaco also noted that the US will tag other international organizations to coordinate crypto regulation. She announced that the DOJ would launch an International Virtual Currency Initiative. The unit will help combat the ever-evolving misuse of virtual currencies, she said.
Other countries are also seriously working to curb the excesses of the crypto industry. Russia is such a country. The Kremlin is considering stricter crypto regulations. Russia plans to release a comprehensive set of regulations for the crypto industry within its borders.
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About the author
Olivia’s interests span the entire cryptocurrency and NFT and DeFi industry. She remains as fascinated with cryptocurrencies today as she was in 2017 when she first started reading about them. She is actively looking for the latest Crypto related stories. When she’s not writing, she tends to her pet Chihuahua or prepares vegan recipes. Reach me at [email protected]
This post Bitcoin Proponent Says Self-Preservation Can Fight the Dangers of the FBI’s Crypto Unit
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