Bitcoin Stops as Yellen Flags Concerns Crypto Usage in ‘Illegal’ Activities By

© Reuters.

By Yasin Ebrahim – easing from session highlights Tuesday after new US Treasury Secretary Janet Yellen highlighted the use of cryptocurrencies to fund “illegal” activities at a time when some are worried that regulatory scrutiny is calling for regulatory scrutiny the industry.

Bitcoin () rose 1.7% to $ 36,428, after hitting a $ 37,936 session high.

“I think a lot [cryptocurrencies] are used, at least in a transactional sense, primarily for illegal financing and I think we really need to explore ways in which we can reduce their use and ensure that anti-money laundering does not occur through those channels, ”he said Yellen on Tuesday.

“[W]We need to make sure our methods for dealing with these issues, with the financing of technology terrorism, change along with changing technology, cryptocurrencies are a particular concern, “Yellen said in response to a New Hampshire Democratic Senator question, Maggie Hassan.

However, Yellen’s stance on bitcoin and cryptocurrency is not new. In October 2018, it noted the risk of bitcoin for illegal transactions.

The move still triggered cryptocurrency participants and sparked fears that regulatory scrutiny of cryptos could intensify just as the U.S. Securities and Exchange Commission has set for new leadership.

President-elect Joe Biden named Gary Gensler as his choice for US SEC chairman on Monday.

The incoming Gensler, who teaches a class on blockchain technology, has earned a reputation as a hard-line regulator after introducing regulatory reforms to clean up the derivatives market in the wake of the financial crisis.

Gensler is expected to prioritize investor protection, with regulatory guidelines regarding cryptocurrency investing heavily to come under his view.

Disclaimer: Fusion Media I would like to remind you that the data contained on this site is not necessarily real time or accurate. Not all CFDs (stocks, indices, futures) and Forex prices are provided by exchanges but rather by market makers, so prices may not be accurate and may differ from the actual market price, which means prices are indicative and not appropriate for trading purposes. Fusion Media therefore has no responsibility for any trading losses you may incur as a result of using this data.

Fusion Media or anyone involved in Fusion Media will not accept any liability for loss or damage as a result of relying on the information including data, quotes, charts and buy / sell signals contained on this site. Be fully aware of the risks and costs associated with trading the financial markets, it is one of the most risky investment returns possible.