US Department of Justice to Tighten Crypto Exchanges Oversight

The US Department of Justice has announced that it will take “strong action” against illegal activities on cryptocurrency trading platforms, according to the Financial Times.

Eun Young Choi, director of the National Digital Asset Enforcement Group (NCET), has said the agency’s goal is to target exchanges which allow criminals to “easily profit from their crimes and cash out.”

Choi has added that NCET’s focus is on companies that do not comply with KYC/AML regulations or engage in rigorous compliance and risk mitigation.

She has stated that the number of cryptocrimes has risen “significantly” over the past four years.

Furthermore, the Ministry will take additional measures to fight investment fraud. The FBI estimates that the amount of money lost as a result of criminal schemes has increased from approximately $900 million in 2021 to $2.5 billion in 2022.