The Biden administration is planning to reveal new actions against hackers that ransom payments in cryptocurrency, The Wall Street Journal has learned, citing sources familiar with the matter. According to the report, the authorities want to impose a regulatory burden on the cryptocurrency business.
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The Treasury Department will reveal a new guidance for the crypto-related business on the risks associated with facilitating these payments. The guidance will include fines and penalties. It is expected that first the first sanctions will be imposed as soon as next week.
The authorities are also planning to update anti-money laundering rules and terror finance rules, which are planned to come by the end of this year. While the details of the new updates remain unclear, the rules will reportedly focus on limiting the use of cryptocurrency for payments in ransomware attacks and other illicit activities.
The move follows reports of new recommendations developed by the Treasury Department for issuers of stablecoins. According to the watchdog, the holders of stablecoins should be able to convert the assets for free into the currency in which they are backed. Among other things, the recommendations cover issues such as how stablecoin transactions are processed and calculated and how market conditions affect this process.
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