FBI director claims Cryptocurrencies pose threat to national security on November 5 Senate hearing

FBI Director Christopher Wray appeared before a hearing by a US Senate Committee dedicated to discussing national security and counter-terrorism.

FBI Director calls crypto-assets “a significant issue”

In the hearing held on November 5, Christopher replied to concerns regarding Bitcoin and other crypto assets. The FBI director admitted that cryptocurrencies pose a threat to national security and can become a more significant issue if not dealt with carefully.

Senator representing Utah, Mitt Romney, addressed the issues regarding crypto. Romney asked whether digital assets posed a threat high enough for the US to take action. The FBI Director remarked that virtual assets were already a huge problem. He added that the issue is going to become “a bigger and bigger” one if things continue to proceed the way they are right now. He admitted that it was hard to comment on whether it is subject to some regulatory response.

The FBI Director then stated that terrorism continues to persist in modern society, and terrorists are becoming more technology-savvy. He maintained that they are looking for a platform that facilitates their actions while providing a high level of privacy. He then highlighted that crypto assets provide such anonymity. He stated that the agency is now paying attention to such assets and working to create tools that can monitor activity on the blockchain network.

Other regulatory heads’ view on crypto assets

The comment was similar to remarks made by the Australian Minister of Home Affairs, Peter Dutton. Dutton had said that virtual assets encourage terror finance and cover their actions. On the other hand, Sigal Manglekar argued that terrorists are currently using traditional methods to fund their actions. However, he admitted that crypto assets could soon become a new funding method for terrorists.