# Illicit Finance Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Illicit Finance", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Catholic And Law Enforcement Groups Warn CLARITY Act Could Weaken Crypto Crime Safeguards

A coalition of Catholic leaders, law enforcement groups, and anti-trafficking advocates warns that the CLARITY Act could weaken safeguards against crypto-enabled crime. Their criticism focuses on provisions that would protect developers of non-custodial software (like wallets and DeFi protocols) from being regulated as money transmitters. This highlights a core regulatory dilemma: distinguishing neutral software from financial intermediation. Crypto advocates argue such developers should not be treated like exchanges, while critics fear broad exemptions could hinder the tracking of illicit finance, including human trafficking and sanctions evasion. The bill aims to create clearer market-structure rules, but this opposition shows the debate extends beyond investor protection to law enforcement concerns. The pushback means supporters may need to address these issues, potentially leading to amendments or stricter requirements. For the crypto industry, clearer rules could spur U.S. investment, but the bill faces a tougher political path if framed as weakening crime-fighting tools.

bitcoinist3h ago

Catholic And Law Enforcement Groups Warn CLARITY Act Could Weaken Crypto Crime Safeguards

bitcoinist3h ago

U.S. Treasury moves forward with GENIUS Act – New rules protect stablecoin issuers

The U.S. Treasury, through FinCEN and OFAC, has proposed a new rule under the GENIUS Act (signed into law in July 2025) that treats permitted payment stablecoin issuers similarly to banks under the Bank Secrecy Act. This aims to combat money laundering, terrorist financing, and sanctions evasion by imposing anti-money laundering obligations on issuers. The rule is designed to protect national security without hindering innovation in the payment system. This action follows multiple cases of illicit stablecoin use, including seizures of millions of dollars linked to scams and criminal activities. Treasury Secretary Scott Bessent stated the proposal strengthens U.S. leadership in digital finance while safeguarding the financial system.

ambcrypto04/09 14:03

U.S. Treasury moves forward with GENIUS Act – New rules protect stablecoin issuers

ambcrypto04/09 14:03

Crypto Donations Branded ‘Dangerous’? UK Security Panel Urges Immediate Ban

A UK National Security Panel has called for an immediate ban on political donations made with cryptocurrency, labeling them an "unnecessary and unacceptably high risk" to the integrity of the political finance system. The cross-party committee warns that crypto donations create a "gaping hole" in national security defenses, making it difficult to verify donors due to pseudonymous wallets, mixers, and foreign payment processors. The report urges stricter donor-identity checks, wealth-source verification, and a single-agency lead for enforcement to prevent foreign interference and illicit finance. Proposed rules would require donations to go through FCA-registered platforms, prohibit mixed coins, and mandate conversion to pounds within 48 hours. This is framed as a national security measure, not a blanket attack on crypto.

bitcoinist03/18 13:33

Crypto Donations Branded ‘Dangerous’? UK Security Panel Urges Immediate Ban

bitcoinist03/18 13:33

Treasury’s GENIUS Act Report Backs Mixers, But Wants a New ‘Hold Law’ For Crypto

The U.S. Treasury's GENIUS Act report acknowledges the legitimate privacy benefits of cryptocurrency mixers for lawful users, such as protecting personal or business transactions. However, it highlights the misuse of these tools by illicit actors like North Korean cyber units and ransomware groups to launder funds. To address this, the report proposes a new "digital-asset-specific hold law" that would allow regulated platforms to temporarily freeze suspicious transactions, giving law enforcement time to act without disrupting legitimate privacy-focused usage. The report is part of a broader effort to balance financial innovation and security under the GENIUS Act framework.

bitcoinist03/09 16:32

Treasury’s GENIUS Act Report Backs Mixers, But Wants a New ‘Hold Law’ For Crypto

bitcoinist03/09 16:32

North Korea steals $2.8B in 2 years – Here’s what U.S. Treasury wants to do

The U.S. Treasury is intensifying efforts to combat illicit financial activities involving digital assets, as highlighted in a report under the GENIUS Act. The study identifies significant risks, particularly with stablecoins, which accounted for 84% of illicit crypto transactions in 2025. The Treasury recommends enhanced monitoring using AI and real-time blockchain analytics, and proposes treating major stablecoin issuers like regulated financial institutions. The report also underscores growing threats from state-backed actors, notably North Korea, which stole an estimated $2.8 billion in crypto over two years to fund weapons programs. These findings support legislative push for acts like the CLARITY Act to establish clearer regulatory frameworks for digital assets.

ambcrypto03/09 01:02

North Korea steals $2.8B in 2 years – Here’s what U.S. Treasury wants to do