Financial regulators on Tuesday began cracking down on cryptocurrency exchanges and laid out significant concerns with digital assets.
Sanctions: The Treasury Department announced the first-ever sanctions on a crypto exchange—Russia-based SUEX—as part of a government-wide effort to combat ransomware attacks. Treasury said over 40% of SUEX’s known transaction history is associated with illicit actors.
Ransomware: More broadly, Treasury said virtual currency exchanges are critical to the profitability of ransomware attacks and that it will continue targeting these entities to reduce incentives for cybercriminals.
OCC’s Hsu: Also Tuesday, Acting Comptroller of the Currency Michael Hsu revealed deep skepticism of digital asset innovations in remarks to the Blockchain Association. Among his remarks, Hsu said: