Cryptocurrency exchanges come under intense scrutiny as DOJ launches new task force

Under the Biden-Harris administration, the White House has made anticorruption part of the core interests of U.S. national security, proposing a five-pillar strategy. The strategy includes the creation of a new task force to address illicit activity on crypto exchanges and other services that could be a conduit for money laundering.

Motivated to strengthen anti-money laundering (AML) regulations and enforcement of criminal and civil laws, the U.S. federal government plans to implement new tools for investigating and prosecuting money laundering crimes. Specific to cryptocurrencies, “The Third Pillar: Holding Corruptors Accountable” highlights.

“The Department of Justice will leverage a newly created task force, the National Cryptocurrency Enforcement Team, to focus exclusively on complex investigations and prosecutions of the illicit use of cryptocurrencies.”

The White House mentioned that the National Cryptocurrency Enforcement Team will be specifically tasked with overseeing "crimes committed by actors involved in virtual currency exchanges, coin mixing services, and money laundering infrastructure."

The Justice Department also expanded subpoena powers for certain financial records kept abroad, while introducing new disclosure requirements for beneficial ownership information. The Justice Department also plans to encourage whistleblowers to share information that would allow illicit proceeds to be identified and forfeited.

In parallel to the White House’s latest move, House Financial Services Committee Chairwoman Maxine Waters has invited the CEOs of eight major cryptocurrency companies to discuss the future of digital assets and finance for a meeting on Dec. 8.

According to Cointelegraph, the CEOs of Circle, FTX, Bitfury, Paxos, Stellar Development Foundation, Coinbase and Coinbase Global CFO will appear at the committee hearing.