Regulation On The Horizon As the United States Tackles Crypto Ransomware Attacks

Ransomware assaults are on the rise, with the number of individuals working from home expected to reach an all-time high by April 2021, according to statistics. With its popularity on the rise, some believe that the increase in ransomware assaults is linked to the crypto industry’s rapid expansion.

Despite the ongoing market surge currently making the rounds through Bitcoin and Altcoins alike, several eyes are turning to the United States and its lawmakers as regulation becomes an ever-increasing probability. As ransomware becomes a bigger problem, agencies are finally on the verge of taking action.

It seems that legislators are trying to better grasp how digital assets may be utilized for a variety of reasons as adoption continues to expand throughout the United States. Ransomware victims may be required to provide the Department of Homeland Security with details about any ransom payments they may have faced under the Ransom Disclosure Act, which was proposed on October 5 by Senator Elizabeth Warren and Representative Deborah Ross (DHS).

By collecting crucial data on fiat currency transfers and cryptocurrencies like Bitcoin and Ethereum, The aim is to safeguard investors from cybercrime while also curbing any illegal financial activity in the US. Aside from that, the Department of Homeland Security will lead an investigation into the role of cryptocurrencies in ransomware attacks as part of the law.

Similarly, the Justice Department’s Deputy Attorney General Lisa Monaco recently announced the start of a new effort known as the National Cryptocurrency Enforcement Team, which aims to ferret out any initiatives that enable criminals to launder their cryptocurrency profits.

Why Regulation Could Be Good For Crypto

Cryptocurrencies and the government have had a very tumultuous relationship, to say the least. As it was created directly in opposition to traditional financial systems and a way to leapfrog government and institutional meddling, crypto does not have the best track record in its attempts to mix with government rules. The premise of the absence of a middleman has also caused many crypto users to kick against any form of regulation. 

Regardless, regulation is something that users will have to eventually accept should crypto ever stand a chance of truly widespread adoption. The current crackdown on ransomware is not unwarranted. A statement from Komodo’s CTO opined that ransomware attacks have been steadily on the rise and the attention that the government is paying to it is well warranted. 

In the same vein, a Gate.io officer, Marie Tatibouet stated that ransomware payments have cost people millions of dollars. However, she also brought attention to the governments’ recent infrastructure bill(which many felt unfairly put crypto in its crosshairs) as a reason for the crypto community’s kickback against any form of government regulation. 

The point still stands that this regulation is needed to some extent for the good of the blockchain and its users. However, a balance between freedom and regulation will need to be maintained to ensure that the core goal of blockchain is achieved while keeping people safe from attacks.