blockchain graph diagram 0 The Great Crypto Divide: OFAC is Strictly Regulating Crypto, but Some Say It's Not Enough

The Great Crypto Divide: OFAC is Strictly Regulating Crypto, but Some Say It’s Not Enough

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-The US Department of the Treasurys Office of Foreign Assets Control (OFAC) has designated a cryptocurrency mixer, Blender.io, as a Specially Designated National (SDN).

-This action is the latest in a series of enforcements and sanctions which have been placed on the crypto industry by the US government.

-Cryptocurrency mixers are software applications that mix User As crypto payment with crypto from other users and sends mix of the crypto to one or more addresses designated by User A.

-The mixing process breaks the on-chain link between wallet addresses which improves user privacy and autonomy.

-There are four primary reasons why a person would utilize a mixer: (1) to secure their crypto by hiding the source of transactions in an otherwise open network; (2) to avoid hacks by obscuring the movement of their crypto; (3) to safeguard their identity; and (4) to avoid government regulation by keeping the volume of their transactions private.

-Money laundering should also be considered a possible use of a mixer.

-OFAC makes clear that most virtual currency activity is licit, and most illicit uses are prevented by implementing appropriate Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) and sanctions controls to prevent sanctioned persons and other illicit actors from exploiting virtual currency to undermine U.S foreign policy and national security interests.

-The good part about the blockchainfrom a regulators perspectiveis that once they find the bad actor, they can trace the transactions from the actors wallet across the immutable record of the blockchain.

-Criminals attempting to avoid law enforcement will happen whether crypto mixers exist or not.

-At least with blockchain technology, a ledger of some sort is kept.

 

 

blockchain%20graph%20diagram 0 The Great Crypto Divide: OFAC is Strictly Regulating Crypto, but Some Say It's Not Enough
The Great Crypto Divide: OFAC is Strictly Regulating Crypto, but Some Say It's Not Enough 3

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