The US Treasury confirms progress in addressing crypto wallet anonymity

The US Treasury is working on methods to mitigate the hazards associated with unhosted crypto wallets due to their anonymity.

On June 10, Treasury Deputy Secretary Wally Adeyemo stated that financial institutions should be mindful of the individuals with whom they trade in order to avoid supporting illicit activity using cryptocurrency.

Although he did not specify how the implementation would take place, Adeyemo stated that the government wishes to maintain the sector’s innovative nature.

“We are working to address the unique risks associated with unhosted wallets. Because unhosted wallets are effectively managed on a blockchain, it can be challenging to determine who owns and controls them—creating opportunities to abuse this heightened anonymity,” he said.

Cryptocurrency is a component of the financial future.

The insider also stated that, given the expanding digital nature of the finance sector, the United States is generally headed toward crypto regulation.

Adeyemo stated that the necessity to investigate unhosted wallets, which are blockchain addresses, was prompted by the likelihood of Russia using crypto to circumvent financial sanctions following Ukraine’s invasion. However, he emphasized that there is no indication that Russia is utilizing cryptocurrency to avoid sanctions.