The US Treasury Department is about to release a report on the use of DeFi crime

It is reported that Elizabeth Rosenberg, the assistant secretary in charge of terrorist financing and financial crimes, said that the US Treasury Department will soon release a risk assessment to analyze the criminal use of decentralized finance (DeFi). Rosenberg said at the bank event held in Sydney, Australia on Monday that “illegal actors have been looking for effective ways to hide criminal activities and launder their profits, which poses a threat to the DeFi service or other elements of the virtual asset ecosystem.” She said that her team is “actively carrying out” an upcoming assessment.

Interpretation of this information:

In recent news, it has been reported that Elizabeth Rosenberg, the assistant secretary in charge of terrorist financing and financial crimes, has announced that the US Treasury Department plans to release a risk assessment report that focuses on the criminal use of decentralized finance (DeFi). The announcement was made during a banking event held in Sydney, Australia on Monday. According to Rosenberg, illegal actors have been seeking ways to hide their criminal activities and launder their profits using DeFi, which she believes poses a significant threat to the DeFi service and other areas of the virtual asset ecosystem.

These criminal activities have led the US Treasury Department to conduct a risk assessment of DeFi. Though no details have been given on the scope and coverage of the assessment, it’s expected to be released soon. The aim of the assessment is to identify the possible risks in DeFi, including the possible risk of money laundering, terrorist financing, fraud, and other criminal activities. This is part of the Treasury Department’s efforts to monitor the use of cryptocurrencies and decentralized finance systems in the United States.

The approach by authorities toward DeFi is a crucial development that is likely going to shape the future of the sector. Regulations have been a contentious issue in the cryptocurrency industry’s development. Here, the assessment might give regulators a better idea of how to approach DeFi’s regulation, which was initially conceived to be an alternative to the heavily-regulated legacy financial system. By doing so, the US Treasury Department aims to ensure that DeFi operates within the law while protecting investors from malicious actors.

In conclusion, the report by Elizabeth Rosenberg confirms the US Treasury Department’s commitment to monitor the illegal use of decentralized finance systems in the United States. The move is aimed at identifying the risks associated with DeFi and other virtual asset ecosystem’s criminal use. As such, the US Treasury Department will soon release a risk assessment report to help guide regulators in developing a regulatory framework for DeFi.