India Preparing for a CBDC-Driven Economy: Central Bank Governor’s Vision
Outgoing Reserve Bank of India Governor Shaktikanta Das believes that the digital rupee has the potential to transform India's economy.
Expanded Investigative Authority: The proposed legislation aims to grant the Secret Service broader powers to investigate cryptocurrency transactions involving unlicensed money transmitters and frauds against US financial institutions.
Increased Funding and Resources: The bill includes provisions for additional funding and resources to enhance the Secret Service’s capabilities in blockchain analysis and cyber forensics.
Enhanced Interagency Collaboration: The legislation emphasises strengthening cooperation between the Secret Service, other federal agencies, and international bodies to create a more coordinated approach to combating crypto-related crimes.
A new legislative proposal to enhance the Secret Service’s capabilities is being considered to combat the increasing prevalence of cryptocurrency-related crimes.
Two United States (US) Senators, Nevada’s Catherine Cortez Masto and Iowa’s Charles Grassley, have introduced the Combating Money Laundering in CyberCrime Act of 2024 bill. The proposal would extend the Secret Service’s authority to investigate crypto transactions conducted by unlicensed money transfer operational fraudulent activities targeting US financial institutions. Masto said, “The funding of criminal activity through digital assets poses a direct threat to the security and safety of our nation.” Masto added, “This bipartisan and bicameral bill will allow for the US Secret Service to better investigate new forms of financial crime involving digital assets.”
Grassley said, “Stronger threat assessments are needed to catch seedy financial enterprises facilitating money laundering schemes.” Grassley added, “Putting financial activity on federal law enforcement’s radar like this bill does will improve our capacity to anticipate and prevent crimes.” As digital currencies like Bitcoin (BTC) and Ethereum (ETH) gain mainstream acceptance, they have also become targets for illicit activities such as fraud, money laundering, and ransomware attacks. The proposed bill seeks to expand the Secret Service’s authority to tackle these emerging threats more effectively. This move reflects growing concerns about the security implications of the digital economy and the need for specialised measures to safeguard financial systems.
The bill proposes significant changes to the Secret Service’s mandate, including expanded investigative powers and resources dedicated to crypto crimes. Traditionally known for its role in protecting national leaders and investigating counterfeiting, the Secret Service’s jurisdiction would now extend to more robust oversight of digital financial crimes. Key elements of the proposal include:
The proposed expansion of the Secret Service’s powers significantly impacts the crypto industry and the broader regulatory environment. As the bill progresses through the legislative process, stakeholders in the crypto space are watching closely for potential impacts:
Blockchain forensics firm Chainalysis suggested that illicit addresses laundered $22.2 billion of cryptocurrencies in 2023. Although this figure is substantial, it represents a nearly 30% decrease from the $31.5 billion gandered in 2022. Nevertheless, in February, the US Treasury emphasised that cash continues to be the primary method of money laundering for criminals in the US rather than crypto. However, the US Treasury, Department of Justice, Securities and Exchange Commission, and Commodity Futures Trading Commission have all taken measures in recent years to combat crypto-related crime.
The proposed bill to expand the Secret Service’s role in addressing crypto crimes marks a significant development in the ongoing battle against digital financial misconduct. The legislation aims to strengthen the nation’s ability to detect, investigate, and prevent crypto-related crimes by equipping the agency with enhanced powers and resources. As the legislative process unfolds, the crypto industry, regulatory bodies, and privacy advocates must engage in constructive dialogue to shape the outcome.
The evolving landscape of digital currencies presents both opportunities and challenges, and the proposed changes highlight the need for a balanced approach that safeguards both security and individual rights. As lawmakers continue to deliberate, stakeholders from all sectors will be watching closely to see how this proposal could reshape the future of cryptocurrency regulation and enforcement.
Outgoing Reserve Bank of India Governor Shaktikanta Das believes that the digital rupee has the potential to transform India's economy.
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