First Terror Funding, Now North Korea – Senator Attacks Crypto, Again

Senator Pushes to Include Crypto in Banking Laws

Senator Elizabeth Warren has advocated for stricter crypto regulations, citing concerns about its use in crimes and the potential threat to citizens’ safety, especially amid rising global tensions. She’s introduced bills to update banking laws and reinforce bank secrecy for crypto assets. This stance aligns with some views, like Jamie Dimon’s, favouring stringent controls, while others in the U.S. Government see crypto as a promising future, showing the divide on its role and regulation.

Enforcing anti-money laundering rules against crypto to protect national security is common sense & critical. It’s time for Congress to act.

Senator Elizabeth Warren

Crypto Used to Fund North Korean Missiles?

Three Democratic senators, including Elizabeth Warren, Tim Kaine, and Chris Van Hollen, are urging the Biden administration to reveal more about its efforts to counter North Korea’s use of stolen crypto to fund its nuclear program. They view Pyongyang’s increasing reliance on digital assets to bypass sanctions as a major national security concern and have requested information on actions taken to address this issue, as well as updated data on the revenue North Korea is generating through illicit cryptocurrency activities.

However, according to The Wall Street Journal, U.S. officials and cybersecurity experts warn that while the exact impact of crypto theft on North Korea’s funding is unclear due to sanctions, there’s a notable correlation between an increase in missile tests and a rise in crypto heists. North Korea has also established a global shadow workforce of IT professionals, including in Russia and China, who, while engaged in ordinary tech jobs, often contribute to the regime’s cybercrime activities, potentially earning substantial incomes.

Senators Crypto Tales Called Out Before

While Senator Warren went on CNBC to claim that half of North Korea’s nuclear weapons program was funded by crypto, these are not the first claims against the asset class the fierce crypto opponent has made.

Warren claimed, immediately after the war between Israel and Hamas began, that Hamas funds its operations through crypto. However, there is no evidence suggesting that crypto is more frequently or effectively used for terrorism financing than traditional banking. Hamas utilised traceable cryptocurrencies like Bitcoin and Tether, not privacy-focused ones like Monero or Zcash. Due to their traceability and the ease of freezing assets by exchanges, Hamas ceased seeking crypto donations.

John Deaton, who would be no stranger to anyone following the legal debate in crypto, seems to dislike the anti-crypto crusade of Warren so much that he would be willing to run for Senate. Deaton, a Massachusetts lawyer living in Rhode Island, is considering buying a home in Massachusetts, moving there, and running for Senate in 2024 to confront issues of government overreach.