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


© Reuters.

By Yasin Ebrahim

Investing.com – 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.

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