Crypto's Anonymity Fosters Illicit Finance, Warns New York Regulator

By: Eliza Bennet

The New York Department of Financial Services (NYDFS) has raised concerns regarding the enactment of illicit financial activities within the crypto sector. The Superintendent pointed to the 'element of anonymity' that crypto operates upon as a leeway for potential bad actors.

The regulatory body is also prepared to take stern action against any crypto entities failing to adhere to the rules. In the past, serious enforcement actions have been initiated against renowned companies like Coinbase and Robinhood.

Despite the potential illicit use, the regulator didn’t wholly dismiss the potential positive changes that the crypto industry could bring about. However, concerns for appropriate regulation and compliance within the industry remain persistent.