The United States of America presented a draft of the new law whose objective is to fight against the terrorists who use cryptocurrencies in their terrorist activities.
The new law was presented to the Congress by Ted Budd, a member of the House Committee on Financial Services. He is proposing to form an independent technological-financial department that would be in charge for allocating the rewards to the people who provide information based on which the terrorists would be convicted. It is not clear if the rewards would be paid in dollars or cryptocurrencies.
The second part of the law says: “According to the opinion of the US Congress, the Federal government should prioritize the fight against the terrorists and the illegal use of new financial technologies, including the digital currencies.”
The new Fintech department would be managed by the Secretary of the Treasury and it would be comprised of five federal directors and four experts from the private sector, non-profit sector and the banking sector.
The new law also proposes to create a Fintech leadership fund for innovations that would inspire the development of programmes and method to discover the use of digital currencies among the terrorists. This fund could provide scholarships to universities, companies, non-governmental organizations and individuals that could contribute to the research of the instruments for detection of terrorist attacks.
In May last year, a new law related to the cryptocurrencies was introduced in the United States. According to that law, all the owners of cryptocurrencies entering the US had to declare their cryptocurrency assets if the value surpassed ten thousand dollars. The objective of the law was to prevent money laundering, a popular source of financing among the terrorists.
The European Union published a report in June last year about the terrorists financing. The report showed that the terrorists still preferred cash over the digital currencies, especially because the blockchain networks make records of all the transactions.