Iran's use of Bitcoin to bypass sanctions may intensify US regulatory crackdown

The crypto market is being flooded with news about senior U.S. government officials’ views on Bitcoin and cryptocurrencies, with U.S. President Donald Trump stating that he is “not a fan of cryptocurrencies” and his Treasury Secretary Steve Mnuchin explaining that crypto is a “national security” issue.
Now, countries under severe U.S. sanctions are increasingly turning to Bitcoin in an attempt to circumvent economic sanctions, which could ignite the flames of U.S. regulators to impose strict regulations on the crypto market.
Iran Turns to Bitcoin as Sanctions Intensify<br />Iran is a country that is under massive sanctions that have stifled its economy. While sanctions against the Middle Eastern country had seen some progress under the Obama administration, much of that progress has been reversed over the past few years under the Trump administration.
Many policy experts and officials within the U.S. government are increasingly concerned about how much power Bitcoin could give to dangerous regimes sanctioned by the United States, with a U.S. Treasury official recently explaining that exchanges must prevent sanctioned countries from taking advantage of cryptocurrencies.
“As Iran becomes increasingly isolated and more desperate for U.S. dollars, it is critical that virtual currency exchanges, peer-to-peer traders and other digital currency service providers strengthen their networks to combat these illicit schemes,” Sigal Mandelker, Treasury’s undersecretary for terrorism and financial information, told The Associated Press.
Will Iran escalate US regulatory crackdown on cryptocurrencies?
Importantly, as the government becomes more interested in enacting regulations on the domestic crypto market in the United States, concerns have arisen about some regimes using Bitcoin and other cryptocurrencies to circumvent sanctions.
U.S. Treasury Secretary Steven Mnuchin called cryptocurrency a “national security” issue in a recent press conference, further adding that the government is planning to regulate Bitcoin and the market to combat illegal transactions.
“I want to be careful to make sure that anyone who is using Bitcoin — regardless of the price — is not using it for illegal purposes. There are billions of dollars worth of Bitcoin and cryptocurrencies being used for illegal purposes,” he explained.
While it’s unclear how much of Bitcoin’s transactions are actually used for illegal purposes, it’s clear that governments are concerned about how much power Bitcoin could give to tyrannical regimes and criminals, which could foreshadow an influx of new regulatory policies to come.

Source: NewsBTC