{"id":102674,"date":"2020-11-01T20:53:04","date_gmt":"2020-11-01T17:53:04","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/declaring-a-crackdown-what-to-make-of-the-doj-crypto-framework-release\/"},"modified":"2020-11-01T20:53:04","modified_gmt":"2020-11-01T17:53:04","slug":"declaring-a-crackdown-what-to-make-of-the-doj-crypto-framework-release","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/declaring-a-crackdown-what-to-make-of-the-doj-crypto-framework-release\/","title":{"rendered":"# Declaring a crackdown? What to make of the DoJ crypto framework release"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a28c12ae1616\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a28c12ae1616\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/declaring-a-crackdown-what-to-make-of-the-doj-crypto-framework-release\/#Timing_and_context\" >Timing and context<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/declaring-a-crackdown-what-to-make-of-the-doj-crypto-framework-release\/#The_message\" >The message<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/declaring-a-crackdown-what-to-make-of-the-doj-crypto-framework-release\/#Going_forward\" >Going forward<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Declaring a crackdown? What to make of the DoJ crypto framework release  <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjAtMTEvZjhkNWJjZGItYjQwMS00Yzg2LWE2MDktNjdjZGQ5NTllZjk4LmpwZw==.jpg\" \/><\/p>\n<div data-v-5a136f3a=\"\">The United States Attorney <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a>\u2019s Cyber-Digital Task Force recently unveiled the result of its months-long effort to evaluate emerging cryptocurrency-related threats and articulate law enforcement strategies for countering them. The resulting<a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.justice.gov\/ag\/page\/file\/1326061\/download\"> guidance<\/a> leaves the reader with an impression that its authors have a sound understanding of how the focal asset class works as well as a certain fixation on the ways it can be misused, as some observers contend.<\/p>\n<p>In the highly charged atmosphere of the final weeks before the presidential election, with high-profile enforcement actions against the people behind crypto derivatives exchange BitMEX and the U.S. government\u2019s sweeping anti-monopoly push against Silicon Valley looming in the background, the Cryptocurrency Enforcement Framework seems like part of some larger political and regulatory dynamic. How does the release of the document fit into the grand scheme of things, and what message is it meant to convey?<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Timing_and_context\"><\/span>Timing and context<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>One reason why even a modest uptick in enforcement activity in the digital asset space can feel like a full-blown clampdown is that U.S. government agencies have so far been rather selective when deciding whether or not to go after unscrupulous crypto actors.<\/p>\n<p>The lack of specific regulations, as well as the infamous confusion as to which regulatory body is taking point, has left a general strategy of stepping in only to prosecute the most egregious cases, as opposed to blanket enforcement. The DoJ\u2019s introduction of the Crypto Enforcement Framework could suggest that the tide is turning.<\/p>\n<p>Andrew Hinkes, co-founder of consultancy Athena Blockchain and an attorney at law firm Carlton Fields, sees the report as mainly a recap of law enforcement efforts in the blockchain space over the past six years, however, one that indicates a clear upward trend:<\/p>\n<blockquote><p>\u201cDifferent federal agencies mentioned in the report, such as the SEC, CFTC, and FinCEN, have all been steadily increasing their regulatory and enforcement activity in the cryptocurrency space as that space has grown. Much of the report collects and describes the different agencies\u2019 actions over the past few years.\u201d<\/p><\/blockquote>\n<p>Barry Boss, co-chair of the commercial litigation department at law firm Cozen O\u2019Connor, noted that the DoJ has so far been treading \u201cfairly lightly\u201d in terms of enforcing everyday regulatory requirements, perhaps taking its time to understand the market as it develops.<\/p>\n<p>It seems unlikely that the release of the present enforcement guidelines has been timed to any particular developments in the cryptocurrency market, as the comprehensive 83-page report has been many months in the making.<\/p>\n<p>Speaking about the general political moment, Arlo Devlin-Brown, partner at Covington &amp; Burling in white-collar law and investigations, observed that cryptocurrency enforcement is far from being among the hot-button issues of the 2020 presidential election:<\/p>\n<blockquote><p>\u201cI suspect that this task force, like other DOJ task forces, is seeking to complete outstanding reports prior to a potential change of administration in January. That said, I don\u2019t think this issue is particularly relevant to electoral politics, and I don\u2019t foresee significant changes in cryptocurrency enforcement priorities at the DOJ should Biden win the Presidential election.\u201d<\/p><\/blockquote>\n<h3><span class=\"ez-toc-section\" id=\"The_message\"><\/span>The message<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The guidance document details the DoJ\u2019s priorities and strategies with regard to the maturing cryptocurrency industry, aiming to inform the law enforcement community, market participants and the general public both at home and abroad. Apart from this, parts of the report can be read as a signal of what certain subsets of crypto stakeholders can expect for the future.<\/p>\n<p>Boss told Cointelegraph that the new guidelines hint at the DoJ\u2019s willingness to ramp up enforcement. In his opinion, the report serves to \u201cput the cryptocurrency community on notice.\u201d This time, it won\u2019t be just for the most brazen criminals:<\/p>\n<blockquote><p>\u201cThere have been several studies that have shown that significant volumes of terrorist financing, money laundering, and other illicit proceeds are funneled through major, established exchanges. DOJ made clear in its framework that it is aware of this problem and that enforcement of federal criminal laws, including KYC and AML requirements, is part of its framework for addressing it.\u201d<\/p><\/blockquote>\n<p>Hinkes of Athena Blockchain called the report a message \u201cto persuadable participants in the cryptocurrency marketplace and industry\u201d to remind them that \u201cthey should stay on the right side of the regulatory line because the federal government is committing substantial resources to combating criminal activity associated with, facilitated by, or targeted against cryptocurrencies.\u201d<\/p>\n<p>Generally, most experts who spoke to Cointelegraph on this matter agree that the framework\u2019s publication illustrates the government\u2019s resolve to significantly boost its enforcement efforts on the digital assets front. While this could spell more regulatory certainty and safer adoption for the crypto industry at large, certain sectors such as blockchain analytics, which specializes in transaction tracing and works closely with law enforcement, will be benefited directly.<\/p>\n<p>Amanda Wick, chief of legal affairs at blockchain analytics firm Chainalysis, spoke enthusiastically about the U.S. government\u2019s commitment to lowering financial risks for crypto users. She reiterated that blockchain intelligence has already won law enforcement some important battles:<\/p>\n<blockquote><p>\u201cWith the help of blockchain analysis, DOJ has successfully investigated and prosecuted cases involving cryptocurrency, including charges of money laundering, drug trafficking, fraud, and more.\u201d<\/p><\/blockquote>\n<p>Wick is convinced that the urgency of crypto-related threats will prompt authorities to allocate additional resources in order to address them.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Going_forward\"><\/span>Going forward<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Above all else, the Department of Justice has laid out a comprehensive vision of response strategies for noncompliance and general illicit crypto-asset activity, notes Liat Shetret, senior advisor for crypto policy and regulation at crypto analytics and compliance firm Elliptic. He added:<\/p>\n<blockquote><p>\u201cThe key message boils down to the \u2018how.\u2019 How will the DoJ accomplish this? In that regard the plan is specific and clear-cut.\u201d<\/p><\/blockquote>\n<p>Shetret then laid out the five prongs of the new law enforcement strategy: coordinating parallel enforcement actions and interagency partnerships, promoting law enforcement awareness and expertise, cooperation between federal and state authorities, increased international cooperation, and private-sector education and outreach.<\/p>\n<p>Some experts also think that the DoJ\u2019s framework can inform lawmakers\u2019 thinking on how to go about certain novel challenges.<\/p>\n<p>Dean Steinbeck, chief operating officer at blockchain company Horizen Labs, commented to Cointelegraph:<\/p>\n<blockquote><p>\u201cThe report will clearly be used by US policy makers when enacting laws involving cryptocurrency. In particular, the report spends a lot of time examining privacy coins, or what it calls \u2018Anonymity Enhanced Cryptocurrencies\u2019 or \u2018AECs.\u2019 I wouldn\u2019t be surprised to see Congress quoting this report in laws aimed at curtailing the use of AECs.\u201d<\/p><\/blockquote>\n<p>Clarifying how exactly existing laws should be <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lied in practice, enforcement guidance normally follows legislation, but it seems that in the bizarre world of crypto, the opposite can be the case as well. At any rate, it would be a good idea for privacy coins and the crypto industry at large to start bracing themselves for both more pointed legislation and tighter enforcement in the near future.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"\/><\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/declaring-a-crackdown-what-to-make-of-the-doj-crypto-framework-release\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Declaring a crackdown? What to make of the DoJ crypto framework release &#8221; The United States Attorney General\u2019s Cyber-Digital Task Force recently unveiled the result of its months-long effort to evaluate emerging cryptocurrency-related threats and articulate law enforcement strategies for countering them. The resulting guidance leaves the reader with an impression that its authors&#8230;<\/p>\n","protected":false},"author":1,"featured_media":102675,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/f8d5bcdb-b401-4c86-a609-67cdd959ef98.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74858,74993,74894,74898,71391,71511,55229,12115,70934,67874],"class_list":["post-102674","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin-regulation","tag-bitmex","tag-blockchain","tag-sec","tag-department-of-justice","tag-government","tag-law","tag-police","tag-regulation","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/102674","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=102674"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/102674\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/102675"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=102674"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=102674"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=102674"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}