🚨Ripple CLO slams US regulators, saying cryptocurrency has become an innocent scapegoat for its money laundering allegations!
The cryptocurrency industry has ushered in another war of words! Stuart Alderoty, chief legal officer of Ripple Labs, recently spoke out on social media, criticizing US regulators for unfairly targeting the cryptocurrency industry when dealing with money laundering issues, while turning a blind eye to similar problems in traditional banks.
🏦 Alderoty's remarks came after the Wall Street Journal revealed major loopholes in the New York Federal Reserve's anti-money laundering measures. The report pointed out that some Iraqi banks used the Federal Reserve system to illegally transfer billions of dollars, and some of the funds even flowed to Iran's Islamic Revolutionary Guard Corps.
Although US authorities have taken action to block the offending banks, the Wall Street Journal reported that the Fed took action after more than a decade of negligence, even after receiving warnings from the Pentagon about illegal financial activities.
💸 At the same time, Alderoty believes that institutions such as the US Securities and Exchange Commission (SEC) and the Federal Reserve have used cryptocurrencies as scapegoats, while ignoring more serious violations in the traditional banking industry.
XPR's lawyer John Deaton also mentioned some startling statistics. According to statistics, less than 1% of cryptocurrency transactions are related to illegal activities. According to the United Nations, the amount of money laundered through the traditional financial system each year is as high as 800 billion to 2 trillion US dollars.
🏦 These include large banks such as HSBC, JPMorgan Chase and Bank of America, which have been reported to be involved in money laundering for drug cartels and other illegal activities. Despite this, the focus of US regulators remains on cryptocurrencies.
Ripple CEO Brad Garlinghouse expressed a similar view, believing that the US government's hostility to cryptocurrencies has had a destructive impact on the development of the industry.
💬 The incident once again highlighted the tension between cryptocurrencies and the traditional financial system. How do you think regulators can achieve a regulatory balance between these two areas?
