When you examine the statements of US politicians regarding cryptocurrencies, you would think they are talking about a terrorist organization. According to them, cryptocurrencies are the source of all the world’s evil and are responsible for financing all kinds of crimes. In short, they argue that many problems will be solved if crypto ceases to exist. But is that really the case?

The Fed and Million-Dollar Penalty

연준과 백만 달러의 벌금

We have previously discussed various crimes, ranging from money laundering to the abuse of authority, using examples from traditional financial institutions. In doing so, we mentioned that the bad examples in crypto are unique to humans.

The Federal Reserve and the New York Department of Financial Services (DFS) have imposed a $29.5 million fine on Metropolitan Commercial Bank for violating the Bank Secrecy Act, alleging that the bank allowed/facilitated $300 million in erroneous transfers. According to DFS, the bank provided the MovoCash digital prepaid Visa card program to malicious individuals in 2020 because it lacked a sufficient verification process to reveal the applicants’ true identities.

연방준비제도(Fed)와 뉴욕 금융서비스부(DFS)는 은행비밀보호법(Bank Secrecy Act)을 위반한 메트로폴리탄 상업은행(Metropolitan Commercial Bank)에 2,950만 달러의 벌금을 부과했으며, 은행이 3억 달러의 잘못된 이체를 허용/촉진했다고 주장했습니다. DFS에 따르면 은행은 신청자의 실제 신원을 밝힐 수 있는 충분한 확인 프로세스가 부족했기 때문에 2020년에 악의적인 개인에게 MovoCash 디지털 선불 Visa 카드 프로그램을 제공했습니다.

Thieves who registered on the platform with fake identities redirected numerous payroll payments and government aid to themselves. In other words, MCB failed to prevent a massive fraud in the MovoCash prepaid card program and allowed malicious individuals to exploit the financial system.

Over $300 million in pandemic relief and other payments fell into the hands of scammers. The Fed is now forcing MCB to improve its customer identification, customer status determination, and third-party risk management programs.

Is the Problem with Cryptocurrencies?

암호화폐에 문제가 있나요?

MCB is already a $6.7 billion institution, with most cryptocurrencies having a market value greater than its assets. In fact, if we consider its assets such as DeFi TVL, Maker, excluding Lido, surpasses the entire platform in terms of total locked value. So, what has this “regulated” and “US-interest-serving” institution done? It has fallen into the hands of the Fed for the crime of “weak KYC,” which necessitates waging war against crypto exchanges.

So, is the problem really with cryptocurrencies? We mentioned that US politicians use bad examples in crypto to wage war against the entire industry. In that case, shouldn’t they say that existing banks are at the center of evil and the den of fraud? Is the exploitation of $300 million in government aid insignificant?

그렇다면 정말 암호화폐에 문제가 있는 걸까요? 우리는 미국 정치인들이 암호화폐 업계 전체에 맞서 전쟁을 벌이기 위해 나쁜 사례를 사용한다고 언급했습니다. 그렇다면 기존 은행은 악의 중심, 사기의 소굴이라고 해야 하지 않을까? 정부 지원금 3억 달러를 활용하는 것이 하찮은 일인가?

The problem is not with cryptocurrencies. The crime lies in the human factor, and there are also bad actors within the crypto industry. Just like the leaders of massive institutions that have been penalized for billion-dollar money laundering crimes, the criminals are to blame.

And cryptocurrencies are not the primary financial channel for crime. Just a few years ago, ISIS was selling slaves for $10,000. Those who handed over the green paper with Benjamin Franklin’s portrait bought slaves for amounts like $10,000. ISIS did not conduct slave sales with Dogecoin or Ethereum.

그리고 암호화폐는 범죄의 주요 금융 채널이 아닙니다. 불과 몇 년 전만 해도 ISIS는 노예를 10,000달러에 팔았습니다. 벤저민 프랭클린의 초상화가 담긴 녹색 종이를 건네준 사람들은 1만 달러 정도에 노예를 샀습니다. ISIS는 Dogecoin이나 Ethereum을 사용하여 노예 판매를 수행하지 않았습니다.

계속 읽기: https://en.coin-turk.com/are-cryptocurrency-the-source-of-all-evil/