Cryptocurrencies may have their legitimate use, but they have almost always linked with illegal things including terrorism financing and now the US Congress is gearing up to put an end to cryptocurrencies being used to finance terror.
The Financial Technology Innovation and Defense Act was introduced in the US Congress in the second week of January by Rep. Ted Budd (R-NC) of the House Financial Services Committee. While there are many salient features of this bill, one key feature is a fintech task force designed to reward tipsters offering viable information about digital currencies and terrorist use.
US government’s attention towards intercepting the illegal use of cryptocurrencies and enforcing ethical standards can be seen as a positive development.
Rep. Budd’s bill proposes the establishment of an Independent Financial Technology Task Force comprised of half-a-dozen federal officials and a handful from the private sector across banking, nonprofits and think tanks. These individuals would be selected by Treasury Secretary Steven Mnuchin, who would also be included in the Task Force and who recently weighed in on the threat of treating bitcoin as an offshore Swiss account for money-laundering.
The task force would further develop a portfolio, dubbed the Fintech Leadership in Innovation Fund, which would be dedicated to developing tools to uncover terror financing and other “illicit use of digital currencies.” Through the fund, the task force can also distribute grants to US companies, universities, etc. that they deem relevant. In making these distributions, officials are especially keen on technologies that support KYC/AML protocols.