U.S. Treasury Department report reveals rising trend in criminal use of virtual assets

A recent U.S. Treasury Department risk assessment report revealed that criminals are increasingly using virtual assets to conduct illegal activities. Among them, the report stated that some virtual asset service providers (VASPs) either claimed to be exempt from US regulations or failed to register correctly, posing challenges to regulatory oversight. The report also stated that some existing DeFi services failed to comply with AML/CFT regulations, making them easily exploited by illegal elements. Certain terrorist groups, including ISIS-K and Hamas, have gained a deeper understanding of virtual assets and are experimenting with different types of uses.