Bitcoin regulations are dedicated to fighting ransomware attacks
The panel of experts is expected to call for stricter tracking of Bitcoin and other cryptocurrencies.
While cryptocurrencies have gained more acceptance among investors over the past year, they remain a lifeline for ransomware operators and other criminals who face little prosecution risk in most parts of the world.
Ransomware gangs raised nearly $ 350 million last year, a threefold increase from 2019.
Businesses, government agencies, hospitals and school systems are among the victims of ransom demand groups, which US officials say some have friendly relations with nation-states, including North Korea and Russia.
Central bank regulators and financial crime investigators around the world are debating whether and how to regulate cryptocurrencies.
The new regulations aim to breach the secrecy of cryptocurrency transactions.
If implemented, it could dampen enthusiasm among those who see cryptocurrencies as a haven from national monetary policies and government oversight of individuals’ financial activities, after their total value exceeds a trillion dollars.
The task force included representatives from the FBI and the United States Secret Service as well as major technology and security companies.
The band is calling for the creation of a special team of experts within the Ministry of Justice to facilitate cryptocurrency seizures, a process currently fraught with logistical and legal challenges.
A senior Homeland Security official said: This world is created to be anonymous, but at some point, you have to give something up to make sure everyone is safe.
Governments use blockchain technology that documents all Bitcoin transactions.
Many exchanges converting cryptocurrencies into dollars or other currencies are located in countries beyond the reach of US regulators.
Although many exchanges believe that they have established their own networks, they are still dependent on the current financial markets.
International cooperation should help push the platforms to countries where Americans are reluctant to send their money to.