U.S. Treasury under pressure of DeFi market threat!

[Flexystar]

This is not good considering the current market situation of crypto. There are already hundreds of bad news out there, for example, exchangers collapse, Bank collapses, a few exchangers getting licenses banned, and much more. Most of the news also came from the USA only.

Here, if you read this news then it's coming as a shock that US security is at stake after careful reviewing of how the DeFi market is home to illicit spammers, money launderers, and much more! This side of crypto is helping them move the funds around the world without any hesitation and thus keeping all the regulators under pressure.

Recently, a US treasurer made an official statement that US security is not good in terms of financial management considering the large volume of money is getting diverted through the DeFi line which is for illegal stuff.

We have awakened the regulator's dragon, and I don't know but this could place crypto at risk.

WASHINGTON—The burgeoning decentralized cryptocurrency market threatens U.S. national security and needs greater oversight and enforcement against money-laundering, the U.S. Treasury Department said on Thursday.

The warning, in a new Treasury report assessing the risk of the so-called DeFi markets, lays the foundation for tougher regulations and punitive action by federal agencies.

DeFi platforms enable crypto investors to transact with each other through software running online, without a central intermediary overseeing transactions. Without the intermediaries of traditional finance such as banks, regulators currently have little insight into DeFi transactions.

Ransomware hackers, rogue states and other national security threats have seized upon the market’s opaqueness to move money around the world without detection, facilitating the financing critical to their operations, the Treasury Department report said.

“Illicit actors, including criminals, scammers, and North Korean cyber actors are using DeFi services in the process of laundering illicit funds,” said Brian Nelson, Treasury’s undersecretary for terrorism and financial intelligence. “Capturing the potential benefits associated with DeFi services requires addressing these risks.”

The report sketches out how the Treasury Department plans to bring the market under greater federal oversight, suggesting that platforms that fail to establish sufficient vetting policies risk enforcement action.

The private sector should use the department’s findings to inform their own risk mitigation strategies, the Treasury undersecretary said. Companies need to take clear steps, in line with regulations to counter money laundering, terror financing and sanctions-evasion, to prevent illicit actors from abusing DeFi services, Mr. Nelson said.

Among its recommendations, the Treasury Department said the federal government needs to bolster its existing supervision and enforcement of the market by requiring platforms to adhere to the same anti-money-laundering rules that banks and other financial institutions must follow. Federal agencies also need to expand their regulatory powers to cover potential gaps in oversight of the markets, it said, and work with other governments to establish international standards.

Decentralized Cryptocurrency Markets Threaten U.S. Security, Treasury Says

[concept2]

This is not good considering the current market situation of crypto. There are already hundreds of bad news out there, for example, exchangers collapse, Bank collapses, a few exchangers getting licenses banned, and much more. Most of the news also came from the USA only.

Here, if you read this news then it's coming as a shock that US security is at stake after careful reviewing of how the DeFi market is home to illicit spammers, money launderers, and much more! This side of crypto is helping them move the funds around the world without any hesitation and thus keeping all the regulators under pressure.

Recently, a US treasurer made an official statement that US security is not good in terms of financial management considering the large volume of money is getting diverted through the DeFi line which is for illegal stuff.

We have awakened the regulator's dragon, and I don't know but this could place crypto at risk.

WASHINGTON—The burgeoning decentralized cryptocurrency market threatens U.S. national security and needs greater oversight and enforcement against money-laundering, the U.S. Treasury Department said on Thursday.

The warning, in a new Treasury report assessing the risk of the so-called DeFi markets, lays the foundation for tougher regulations and punitive action by federal agencies.

DeFi platforms enable crypto investors to transact with each other through software running online, without a central intermediary overseeing transactions. Without the intermediaries of traditional finance such as banks, regulators currently have little insight into DeFi transactions.

Ransomware hackers, rogue states and other national security threats have seized upon the market’s opaqueness to move money around the world without detection, facilitating the financing critical to their operations, the Treasury Department report said.

“Illicit actors, including criminals, scammers, and North Korean cyber actors are using DeFi services in the process of laundering illicit funds,” said Brian Nelson, Treasury’s undersecretary for terrorism and financial intelligence. “Capturing the potential benefits associated with DeFi services requires addressing these risks.”

The report sketches out how the Treasury Department plans to bring the market under greater federal oversight, suggesting that platforms that fail to establish sufficient vetting policies risk enforcement action.

The private sector should use the department’s findings to inform their own risk mitigation strategies, the Treasury undersecretary said. Companies need to take clear steps, in line with regulations to counter money laundering, terror financing and sanctions-evasion, to prevent illicit actors from abusing DeFi services, Mr. Nelson said.

Among its recommendations, the Treasury Department said the federal government needs to bolster its existing supervision and enforcement of the market by requiring platforms to adhere to the same anti-money-laundering rules that banks and other financial institutions must follow. Federal agencies also need to expand their regulatory powers to cover potential gaps in oversight of the markets, it said, and work with other governments to establish international standards.

Decentralized Cryptocurrency Markets Threaten U.S. Security, Treasury Says

Oh snap, the US Treasury Department is sweating bullets over the decentralized cryptocurrency market and how it could be a major threat to national security. Apparently, the DeFi market, which lets people trade crypto without a big cheese watching over them, has turned into a hangout spot for sketchy people doing sketchy things like money laundering and terrorist financing.

Now, the Treasury is telling everyone to tighten their belts and get tough on DeFi activities. That means making DeFi platforms follow the same anti-money laundering rules as banks and giving regulators more power to keep an eye on everything. They're also telling companies to keep the riff-raff out of DeFi services.

But, let's be real here, all this regulation could make the already-insane crypto market even more bonkers. Who knows how the industry will react to all these changes and what kind of impact they'll have on the future of cryptocurrency.

[Hispo]

I assume it was just matter of time before the Treasury continue to make noise about Defi.
The problem is that they want for decentralized platforms to have some kind of mechanism to enforce their rules but we all know that as soon as those mechanisms and triggers exist in the DEfi space, those protocols would be considered not to be decentralized anymore and would not be as appealing towards legitimate users anymore.

Curious to see how the Defi community would react to further pressure from regulators, if the DEfi community refuses to comply and does not alter their protocol, I can see the United States issuing executive orders which would forbid any American citizen from holding Defi tokens, do swaps or even provide liquidity to those protocols.

[franky1]

the US treasury does not care about people moving money as a bad thing. they love money movements

USD moves from buyer to seller. meaning the fiat still exists. its just in another account thats part of the same commercial banking groups. and the recipient ends up having to pay tax on their receipt

yep even if you move "value" abroad someone still has the USD in a bank account, whom has to pay tax

treasury actually likes transfers. when a new person gets money the treasury gets income/cap gains tax on it

treasury does not care about illicit purchases. they care about tax evasion uses

what they dont like is HOARDERS. people that save money/dont move money for years. because if money is not circulating/moving. the treasury cannot charge tax per movement

yep
fundamentally. the treasury only gets money if money moves for them to charge people for the movement. so if people are buying crypto and then only doing things in crypto where USD just lays dormant for years. thats less income for the treasury. also if people are using anonymity services to hide any gains. the treasury cant charge gains when people finally exit back to fiat

[AbuBhakar]

what they dont like is HOARDERS. people that save money/dont move money for years. because if money is not circulating/moving. the treasury cannot charge tax per movement

Does accumulating of interest stake from capital stake on DeFi is not counted as moving money? I’m not familiar how taxation law on US but some DeFi offer a real time interest that being add on the balance for the equivalent portion of APY per hour.

So it means that every transaction made in the blockchain is already counted as moving money and subjected for crypto tax despite there’s no profit/loss occur on the original capital and just the fiat value of crypto changes due to the volatility?

[adaseb]

The economy is on the verge of collapsing and they are blaming crypto, makes no sense. They got crazy amounts of debt and debt ceiling needs to be raised. Crazy inflation. Nobody has money for anything. Banks are failing left and right but they sights are set on Crypto. There are more important things that the US government needs to worry about right now.

Like preventing the US economy from going into a hyper inflation state. Even though inflation has cooled, its still there. We got 0.5% MoM inflation, that is still 6% a year, far away from the 2% target. The fed should work on improving stability of the economy instead of working about crypto at the moment.

[Faisal2202]

We have awakened the regulator's dragon, and I don't know but this could place crypto at risk.

That's not good for DeFi Market but That's good for BTC because BTC is clean from decentralized finance technologies which are mostly based on Ethereum and other blockchains. Well, new technologies are coming to make it possible to deploy technologies even tokens on the BTC blockchain but that's just concepts till now, a topic covered by Charles-Tim-->If bitcoin go towards DeFi primarily, the possibility of centralization begins gives main ideas of threats towards BTC if DeFi is being restricted or treated with bad influence overall it could effect the market (BTC) but probably for the short term.

But, let's be real here, all this regulation could make the already-insane crypto market even more bonkers. Who knows how the industry will react to all these changes and what kind of impact they'll have on the future of cryptocurrency.

I think this will pass as passed before actually now the USA economy is facing some difficulties due to bankruptcies of Banks plus elections are coming and we all know in the timespan of elections every political leader try to do everything right to win voters trust and to do that leaders has to make favorable changes just like the senator of bay city in USA tried to make her Anti Crypto army to fight crypto industry and she showed great hostility against crypto market but did not go as planned. because her points and purpose was unclear to some extent

What i think is, these loophole of DeFi market are the main drawback of crypto market, if these are dealt with great rules and regulations then the overall, behavior of market will improve in the hearts of traditional peoples who have not step into this world till now. No doubt, these AML policy could cause great impact on BTC but until BTC is based on POW protocol, its safe and sound.

[Synchronice]

DeFi platforms enable crypto investors to transact with each other through software running online, without a central intermediary overseeing transactions. Without the intermediaries of traditional finance such as banks, regulators currently have little insight into DeFi transactions.

It's funny how they totally ignore problems from their side. There are slaves and there are freemen and these freemen will never be their slaves, it's their problem, so what's the best possible weapon in this case? Fear! At the same time, their financial system isn't doing well. Has any government ever blamed their own self? No!

Reality is that yes, while these problems really exist, it doesn't mean that if we block DeFi they don't exist, they exist and have always existed. The reason why they say that DeFi is a problem and accused, is that DeFi takes financial control and power away from them. FED wants to know when, where and how much you spend, everything in details to tax you more, to learn your psychology and take away more money from you by manipulation.

[Gyfts]

I think this will pass as passed before actually now the USA economy is facing some difficulties due to bankruptcies of Banks plus elections are coming and we all know in the timespan of elections every political leader try to do everything right to win voters trust and to do that leaders has to make favorable changes just like the senator of bay city in USA tried to make her Anti Crypto army to fight crypto industry and she showed great hostility against crypto market but did not go as planned. because her points and purpose was unclear to some extent

What i think is, these loophole of DeFi market are the main drawback of crypto market, if these are dealt with great rules and regulations then the overall, behavior of market will improve in the hearts of traditional peoples who have not step into this world till now. No doubt, these AML policy could cause great impact on BTC but until BTC is based on POW protocol, its safe and sound.

The U.S. government is in desperate need of tax revenue but they're afraid of the political ramifications of raising taxes. So they'll hire more IRS agents and look for other ways to raise revenue. Rich people have the funds to hire professionals to find those loopholes for them. The middle class have no remedy. So when the middle class use Bitcoin through decentralized trading avenues, the U.S. government wouldn't resist keeping their nose out of it. Once again, they use the normal scapegoats of "criminals and scammers" as an excuse to ram down more regulation which target law abiding citizens first.

[rokok lokal]

Yes..The recent statement of the US Treasury Department warning of potential threats to national security posed by the decentralized cryptocurrency market, or DeFi, is causing concern in the crypto industry.

The Treasury report claims that DeFi platforms are being used by illicit actors to launder funds and finance national security threats. As a result, the report outlines plans for stricter regulation and enforcement of money laundering.

Yes I think this news adds to the negative sentiment towards the crypto market, which has seen a number of high profile crashes and bans in recent months. Regulatory pressure from the US Department of the Treasury could have a significant impact on the crypto industry, as it could result in increased compliance costs for DeFi platforms and greater oversight from regulators.

Investors may react negatively to this news, as it adds to the uncertainty and regulatory risk associated with investing in the crypto market.

[Fiatless]

Here, if you read this news then it's coming as a shock that US security is at stake after careful reviewing of how the DeFi market is home to illicit spammers, money launderers, and much more! This side of crypto is helping them move the funds around the world without any hesitation and thus keeping all the regulators under pressure.

Recently, a US treasurer made an official statement that US security is not good in terms of financial management considering the large volume of money is getting diverted through the DeFi line which is for illegal stuff.

We have awakened the regulator's dragon, and I don't know but this could place crypto at risk.

The US government has failed to safeguard its financial transaction arena from attacks and fraud. Cryptocurrencies are not the only currency that is used for criminal activities, fiat is also highly used. The government should do more to protect cyberspace and stop the blame game. They should come to terms that cryptocurrencies are here to stay, so instead of pointing accessing fingers on the crypto sector, they should decide to face the challenges it brings. Total regulation of decentralized finance will be difficult because there will always be loopholes to exploit or bypass these control systems.

[DeathAngel]

Unfortunately for them there’s nothing they can do about self custody practises. Unless they want to go North Korea style & start kicking doors in to seize assets then there’s nothing they can do. Sure they can make it more difficult by closing on & off ramps but willing people will always find a way. Of course there will be lots of unfortunate boating accidents if regulators start to become too heavy.

[Ever-young]

what they dont like is HOARDERS. people that save money/dont move money for years. because if money is not circulating/moving. the treasury cannot charge tax per movement

Does accumulating of interest stake from capital stake on DeFi is not counted as moving money? I’m not familiar how taxation law on US but some DeFi offer a real time interest that being add on the balance for the equivalent portion of APY per hour.

So it means that every transaction made in the blockchain is already counted as moving money and subjected for crypto tax despite there’s no profit/loss occur on the original capital and just the fiat value of crypto changes due to the volatility?

I think you are getting it all wrong.
Using your already earned money from you bank to purchase crypto (Defi since that what's in question here) after that very step the Bank and the US Treasury loss control over taxing those assets again, since they now move on decentralized protocols, no way to task the money movement, no way to know what kind of interest they exact money which left the bank a while ago has accumulated. So all they are after is for money to keep on moving on centralized ways which they can have their eyes on it, they don't care how it's being used all their interest is on the much that amount is going to generate for them. Which are task for movement, task on interest rate etc.
So they are after the DeFi because to some point they are blocking them from achieving their main purpose.

[beerlover]

Here, if you read this news then it's coming as a shock that US security is at stake after careful reviewing of how the DeFi market is home to illicit spammers, money launderers, and much more! This side of crypto is helping them move the funds around the world without any hesitation and thus keeping all the regulators under pressure.

Recently, a US treasurer made an official statement that US security is not good in terms of financial management considering the large volume of money is getting diverted through the DeFi line which is for illegal stuff.

We have awakened the regulator's dragon, and I don't know but this could place crypto at risk.

They can try to do whatever they want to do, and maybe they can handle all the people in the business as well, but they can't do anything to the market because that's where the decentralized part comes from. People think that it will go on without a trouble but if you jail the team of pancakeswap, or uniswap or whatever, which I am sure they are located in a place safe, but could still happen, then we have to realize that its not going to be that easy.

I need to make sure that we can do much better and that is why I use decentralized markets that have no owners or anything and just purely managed and run by the people in it. Those can't be touched because there is nobody to touch them, best they could hope is ban the domain.

[concept2]

This is not good considering the current market situation of crypto. There are already hundreds of bad news out there, for example, exchangers collapse, Bank collapses, a few exchangers getting licenses banned, and much more. Most of the news also came from the USA only.

Here, if you read this news then it's coming as a shock that US security is at stake after careful reviewing of how the DeFi market is home to illicit spammers, money launderers, and much more! This side of crypto is helping them move the funds around the world without any hesitation and thus keeping all the regulators under pressure.

Recently, a US treasurer made an official statement that US security is not good in terms of financial management considering the large volume of money is getting diverted through the DeFi line which is for illegal stuff.

We have awakened the regulator's dragon, and I don't know but this could place crypto at risk.

WASHINGTON—The burgeoning decentralized cryptocurrency market threatens U.S. national security and needs greater oversight and enforcement against money-laundering, the U.S. Treasury Department said on Thursday.

The warning, in a new Treasury report assessing the risk of the so-called DeFi markets, lays the foundation for tougher regulations and punitive action by federal agencies.

DeFi platforms enable crypto investors to transact with each other through software running online, without a central intermediary overseeing transactions. Without the intermediaries of traditional finance such as banks, regulators currently have little insight into DeFi transactions.

Ransomware hackers, rogue states and other national security threats have seized upon the market’s opaqueness to move money around the world without detection, facilitating the financing critical to their operations, the Treasury Department report said.

“Illicit actors, including criminals, scammers, and North Korean cyber actors are using DeFi services in the process of laundering illicit funds,” said Brian Nelson, Treasury’s undersecretary for terrorism and financial intelligence. “Capturing the potential benefits associated with DeFi services requires addressing these risks.”

The report sketches out how the Treasury Department plans to bring the market under greater federal oversight, suggesting that platforms that fail to establish sufficient vetting policies risk enforcement action.

The private sector should use the department’s findings to inform their own risk mitigation strategies, the Treasury undersecretary said. Companies need to take clear steps, in line with regulations to counter money laundering, terror financing and sanctions-evasion, to prevent illicit actors from abusing DeFi services, Mr. Nelson said.

Among its recommendations, the Treasury Department said the federal government needs to bolster its existing supervision and enforcement of the market by requiring platforms to adhere to the same anti-money-laundering rules that banks and other financial institutions must follow. Federal agencies also need to expand their regulatory powers to cover potential gaps in oversight of the markets, it said, and work with other governments to establish international standards.

Decentralized Cryptocurrency Markets Threaten U.S. Security, Treasury Says

Hearing that the DeFi markets are a threat to US national security is seriously concerning, man. That report from the Treasury Department is showing us some real talk about how risky the crypto world can be. It's true that without the right oversight, some bad apples can use DeFi services for dirty money laundry and other illegal activities. But let's not forget about the potential good things that DeFi services can bring, ya feel me? Like the Treasury undersecretary said, we gotta address these risks so we can get all the benefits of DeFi services.

The private sector needs to get their act together, like yesterday. We can't let those sketchy folks take advantage of DeFi services, it's just not cool. The companies need to play by the rules, plain and simple. That means no money laundering, no funding terror, no dodging sanctions. And they need to be on top of things, coming up with ways to stop DeFi services from getting abused.

Even though the report sounds like a bummer, I still think that with some good regulations, DeFi services can help bring financial inclusion and innovation to the masses. Governments worldwide need to work together and establish some international standards and beef up their regulatory powers to make sure nothing falls through the cracks. Cryptocurrencies are here to stay, so we gotta make sure they're being used the right way.