Will Calls to Scrutinize Digital-Currency Purchases of Oil Bring New Regulations For Crypto?

Last month Reuters reported that Venezuela's state-run oil company 'plans to increase digital currency usage in its crude and fuel exports as the U.S. reimposes oil sanctions on the country, three people familiar with the plan said.'

[The oil company] since last year had been slowly moving oil sales to USDT, a digital currency also known as Tether whose value is pegged to the U.S. dollar and designed to maintain a stable value. The return of oil sanctions is speeding up the shift, a move to reduce the risk of sale proceeds getting frozen in foreign bank accounts due to the measures, the people said...

Tether said in an email it respects the U.S. Treasury's list of sanctioned entities and 'is committed to working to ensure sanction addresses are frozen promptly.'

This week Reuters reported that now experts are saying the situation 'will require greater scrutiny by regulators and law enforcement.' They spoke to Kristofer Doucett, national security leader at U.S. blockchain analysis firm Chainalysis, who said 'Structures must be set up to combat this type of money laundering.' Reuters writes:

Technology for digital transactions is changing fast and transactions are rapidly growing in developing regions including Latin America and Africa benefiting people without access to the banking system. But some corrupt governments are moving faster, making it difficult to prevent fraud, the experts said. Doucette and Sigal Mandelker, a lawyer who previously worked at the U.S. Treasury Department, said during a conference organized by the Wilson Center in Washington that the U.S. administration is making efforts to increase regulation and encourage other countries to improve supervision.

Slashdot reader RossCWilliams asks a loaded question. Whether this is 'the beginning of the end of unregulated cryptocurrencies... the recognition of cryptocurrency as a national security threat that threatens international financial controls.'

Read more of this story at Slashdot.