U.S. Authorities Point Searchlight into Crypto’s Role in Trafficking

Republicans and Democrats in the Senate Banking Committee are putting preparations in top gear to introduce a bill that would mandate the Government Accountability Office (GAO) to critically study the role of bitcoin (BTC) and other cryptocurrencies in illicit activities such as human and drug trafficking, money laundering, terrorist financing as well as other online activities, according to reports on July 1, 2020. While distributed ledger technology (DLT), bitcoin, and other cryptocurrencies are fast gaining use cases in various sectors of the global economy, the fact still remains that bad actors are taking advantage of the innovative nature of these offerings to carry out illicit activities.

In the latest development, U.S. Senators have stated in a draft anti-money laundering amendment dubbed the “Anti-Money Laundering Act of 2020,” that it has become quite crucial to “modernize anti-money laundering and counter-terrorist financing laws, to adapt the government and private sector response to new and emerging threats.” If all goes as planned and the amendment gets the approval of the authorities, the GAO will be mandated to present a comprehensive report on how Bitcoin and other virtual currencies might be playing a part in human and drug trafficking networks across online marketplaces.

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