A new proposal was tabled by the US House of Representatives Financial Services Committee. The bill aims to investigate how crypto assets are used within “sex trafficking“.
The bill, which was introduced on 10th June, aims to verify how “virtual currency and online marketplaces are used to buy, sell, or facilitate the financing of goods or services associated with sex trafficking.” Additionally, the investigation will inspect the usage of cryptocurrency in illegal operations, such as drug traffic.
“Detect and Fight illicit Trafficking Networks“
The representative who created “Detect and Fight illicit Trafficking Networks” or the “FIND Trafficking Act” is Juan Vargas. His proposal aims to simplify “the efforts of federal agencies to prevent the use of virtual currency and online marketplaces in facilitating sex and drug trafficking.”
According to the bill, within one year from the adoption of the law, the Comptroller General will be legally obliged to provide official information collected after the investigation to the Committee on Banking, Housing, Urban Affairs and the Committee on Financial Services, indicating the conclusions and recommendations.
Virtual currencies help terrorists …
Members of Congress have expressed their disapproval regarding the usage of crypto assets in the past, stating that virtual currencies “help terrorists and criminals move money around the world … They help startup companies commit fraud, take the money, and one percent of the time they actually create a useful business“.
Another representative, Emanuel Cleaver, explained that Bitcoin could be used to “to facilitate radical campaigns of abuse, harassment and/or violence against Americans,” while Roger Williams explained that cryptocurrencies do not meet the criteria imposed by AML/KYC standards.
However, cryptocurrencies continue to be appreciated and promoted by some officials. Tom Emmer claimed that the US should be more receptive to such opportunities offered by advanced technology, encouraging authorities to create permissive regulation.