The Department of Justice stated recently that forming a National Cryptocurrency Enforcement Team is the next step in regulation. It would rely on the agency’s experience in handling situations involving cybercrime and money laundering to address the abuse of cryptocurrencies.
According to Lisa O. Monaco, the Deputy Attorney General, the team would investigate cases involving criminal use of crypto. It would also include crimes that are committed via virtual crypto exchanges and money laundering infrastructure participants.
She went forward to explain that as technology improves, the Department must keep up with it. This way, they’ll be positioned to eliminate abuse on the platform, ensuring user confidence in the system.
Based on reports by authorities, the NCET will have responsibilities like forming strategic priorities. These will be for prosecutions and investigations that involve crypto. They also have to determine areas that require more prosecutorial and investigative focus. Of course, they also need to improve crypto relationships with prosecutors as well as other Department litigating components. On a major level, they’ll be developing relationships with international, local, state, and federal law enforcement agencies that are investigating cases involving cryptocurrencies.
The Assistant Attorney General, Kenneth Polite, explained the necessity of the team. He said that the criminal division holds an established position in investigating and prosecuting criminal misuse of cryptocurrency. Forming a Crypto Enforcement Team will help in building this leadership to the fullest.
Furthermore, the enforcement team will also be clamping down on scams and pump and dump schemes. Even though these types of schemes have become increasingly popular amongst the general public, new investors are still at a greater risk of falling victim to it. By clamping down on these types of businesses, the crypto market will essentially become a safer place to trade.
Obviously, the crypto community did not take the introduction of regulation within cryptocurrencies very lightly. They believed that any type of outside intervention within the market takes away what makes it special. They believe that crypto has made it this far without the help of anybody else, and go all the way on its own as well.
While certainly a bold claim, that is not always the case. An important thing to understand about regulation is that it is bringing about rules that will help newer investors feel more comfortable. Will it become more homogenized? Yes, it will. But it will also lead to the market growing considerably in a short span of time. So even if people do not believe that the cryptocurrency does not need regulation rather education, the new rules will certainly help out new traders to enter the market and make money.