U.S. Secret Service concerned with privacy features of cryptocurrencies, turns to the Congress for help in regulating potential illegal activity.
Robert Novy, Deputy Assistant Director of the U.S. Secret Service’s Office of Investigations, gave a testimony on terrorism and illicit finance to congressmen. He stated that the agency is wary about criminal activity that is simplified by the anonymity - enhanced cryptocurrencies.
Novy noted that because of the “nature of the Internet and modern communication” there should be “additional legislative or regulatory actions to address potential challenges related to anonymity-enhanced cryptocurrencies, services intended to obscure transactions on blockchains” as cryptocurrencies are especially convenient for illegal and transnational activity.
Zcash, as one of the prime cryptocurrencies this potential legislation could affect, due to its high value of customer privacy, responded to this news in an official blog.
“We believe it is in the best interest of the citizens of the United States, the U.S. Secret Service, and other governmental organizations to advocate for privacy rights and protect its citizens and businesses from harm.”