The new US Secretary of the Treasury Janet Yellen (Janet Yellen) warned of “a growing problem” about “abusing cryptocurrencies.” She emphasized that “cryptocurrencies have been used to launder the profits of online drug dealers; they have always been a tool for financing terrorism.”

Janet Yellen warns of cryptocurrency risks

The U.S. Treasury Department held its first roundtable on innovation policy in the financial sector from February 9th to 10th. description.

Treasury Secretary Janet Yellen briefly talked about cryptocurrency in the opening speech of the event. “We are living with a surge in risks related to fraud, money laundering, terrorist financing and data privacy. As the pandemic shifts more of our lives online, so does crime.” She believes. One of the issues she outlined involves cryptocurrency.

Yellen asserted:

The abuse of cryptocurrency and virtual assets is also a growing problem. I saw the promise of these new technologies, but also the reality: cryptocurrencies have been used to launder the profits of online drug dealers; they have always been a tool for financing terrorism.

She told event participants: “Since I served at the Federal Reserve, I have known that your institution plays a vital role in combating this type of crime.” “The private sector invests a lot of resources in finding ways to stop bad actors from abusing existing Technical approach. You will also develop new products.”

In the Senate confirmation hearing, Yellen said that cryptocurrencies are “mainly used for illegal financing,” causing an uproar in the crypto community. However, a report by blockchain analysis company Chainalysis showed that only 0.34% of all crypto transactions last year were related to criminal activities. Many people also pointed out that most money laundering activities are carried out through legal tender, especially U.S. dollars.

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Yellen then clarified her position on cryptocurrency and promised “effective” crypto regulations. At the same time, U.S. Senator Cynthia Lummis, who supports Bitcoin, talked to Yellen on the issue of cryptocurrency and planned to persuade the Secretary of Treasury that Bitcoin is a “huge store of value.”

What do you think of Yellen’s view on cryptocurrency? Let us know in the comments section below.

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