FBI has introduced new units to fight crypto crimes

Crypto industry has garnered mainstream attention with tremendous potential and looming prices. As the industry witnesses more mainstream adoption, more illicit actors are finding ways for crimes. As the number of such criminal activities are continuing to surge, financial regulators and authorities are looking to impose more stringent rules and regulations. Simultaneously, the FBI has announced that it doubles down on the cryptosphere with a new unit. According to a number of cryptocurrency executives, it is claimed that they are cautiously optimistic regarding enforcement clarity as a result of the agency’s move.

FBI ramps up its enforcement to crypto crimes

On Thursday, the US Justice Department touted a new unit focused on digital asset seizure and blockchain-based lawbreaking. Eun Young Choi, the former senior counsel to the Deputy Attorney General will now serve as the director of the National Cryptocurrency Enforcement Team (NCET).

– Advertisement –

According to Choi, the department has been at the forefront of investigating and prosecuting crimes involving digital currencies since their inception. 

Moreover, the NCET will also play a significant role in ensuring that as the blockchain technology evolves, the department in turn accelerates and expands its efforts to combat their illicit abuse by criminals of all kinds.

What will the NCET monitor?

The latest established unit or agency will identify and pursue cases involving the criminal use of crypto assets. Notably, NCET will monitor essentially when it comes to digital assets exchanges and infrastructure firms. The formation of the department could bring overdue oversight to the space, as per the participants.

According to Heson Orser, the president of Komainu crypto custodian, being a custodian firm they need the most robust cybersecurity. This year the industry would witness more traditional financial institutions jumping in the cryptosphere. However, managing such a huge number of assets in self-custody will get more hectic.

Blockchain have to figure out a way to intersect

Transactions on blockchain are transparent and traceable. However, at some point we always have to figure out a way to intersect those publicly viewable wallets with NCET-legitimate exchanges and payment mechanisms. According to Orser, the more regulators embrace making sure that the legitimate exchanges and payment apps and platforms have oversight, the more they are going to catch people at the point of friction.