Man wearing grey shirt and Secret Service vest with radio and star logo, and holding phone in right hand.

US Secret Services Looking to Congress for Aid Against Criminal Use of Coins

Jun 24, 2018, 6:35AM
1 min, 23 sec READ

The Secret Service's Robert Novy is calling for Congressional help to increase law enforcement's ability to counter the illicit use of coins.

Deputy Assistant Director of the US Secret Service's Office of Investigations Robert Novy made waves with his prepared testimony in front of Congress on Wednesday. The House of Representatives Committee on Financial Services, Subcommittee on Terrorism and Illicit Finance listened to Novy outline the Service's increasing concern with the criminal use of private coins.

In recent years, criminals have increasingly used digital currencies to facilitate activities on the Internet.

He referenced the Secret Service's recent investigation into the criminalization of private coins, highlighting five dangerous characteristics of digital currencies, namely,

  1. Widespread adoption as a medium of exchange for intended criminal activities.
  2. The greatest degree of anonymity.
  3. Protection against theft, fraud, and lawful seizure.
  4. Can be readily exchanged to and from their preferred currency.
  5. The ability to quickly and confidently transfer value transnationally.

The Secret Service and other governmental agencies have worked both domestically and internationally to counter the illicit coins used for profit by criminal agencies. Among the coins in question are privacy oriented coins such as Monero and Zcash which seem to be favored by illegal actors. Novy prompted the subcommittee to issue greater attention "to ensure law enforcement agencies maintain lawful access to criminal sources of evidence."

American governmental influence has increased over the past few months, most notably the push towards greater jurisdiction for the Commodity Futures Trading Commission. Regulatory guidelines continue to trickle down from various federal subcommittees, but Novy's request for increased action against illicit coins is far from a singular cry.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.