US moves against misuse of cryptocurrencies, to employ new financial technologies

The United States has moved against the misuse of cryptocurrencies, warning about an explosion of risk associated with digital markets, including cryptocurrencies.

This is as the US Government said that new financial technologies could help fight crime and reduce inequality.

This disclosure was made by the new United States Treasury Secretary, Janet Yellen, while making remarks to a financial sector innovation roundtable on Wednesday, February 10, 2021.

Yellen noted that innovation in the sector could help address these problems and reduce digital gaps dividing the country.

She said “Innovation should not just be a shield to protect against bad actors. Innovation should also be a ladder to help more people climb to a higher quality of life.’’

What you should know

  • Bigwig FX had reported that the US Federal Bureau of Investigation (FBI) warned the Federal Government and the Central Bank of Nigeria (CBN) on the activities of fraudsters using cryptocurrencies to illegally bring in funds running into hundreds of millions of US dollars from the US and other western countries into the country.
  • The CBN, a week ago had issued a circular prohibiting banks and other financial institutions from carrying out transactions in cryptocurrencies or facilitating payments for crypto exchanges.
  • The CBN further justified its directive to all financial institutions to close the accounts of such persons or entities transacting or operating cryptocurrency, stating that countries like China, Canada, Taiwan, Indonesia, Algeria, Egypt, Morocco, Bolivia, Ecuador, Saudi Arabia, Iran, Jordan and so on, have all placed a certain level of restrictions on financial institutions facilitating cryptocurrency transactions.
  • This is due to the significant risks that transacting in cryptocurrencies could portend, which includes the risk of loss of investments, money laundering, terrorism financing, illicit fund flows and other criminal activities.


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