Treasury Department Raises Concerns Over DeFi's Use in Money Laundering and Threat to Security

The US Treasury Department has released a report stating that criminals, including North Korean cyber actors, are using decentralized finance (DeFi) platforms to launder money. The report recommends expanding anti-money laundering/countering financing of terrorism (AML/CFT) regulations to cover all DeFi platforms and strengthening their supervision to deal with projects that may be actively avoiding them. The Treasury Department says that even decentralized financial institutions are required to adhere to the Bank Secrecy Act, which many DeFi platforms fail to do.