The U.S. Treasuring Department is planning on releasing a risk assessment on the role of decentralized finance (DeFi) in criminal activity, according to Assistant Secretary for Terrorist Financing and Financial Crimes Elizabeth Rosenberg.

“This is a threat to DeFi Services or other elements of the virtual asset ecosystem,” Rosenberg said, referring to efforts by illicit actors to hide their criminal activity, at a banking event in Sydney, Australia on Monday.

Rosenberg added that the industry often treats regulations as an afterthought, which is problematic because it has led to the rise of criminal groups such as those affiliated with North Korea, who have used stolen virtual assets to fund North Korea’s nuclear programs.

Author: Tris Bell