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<p class="is-style-lead">During the House Subcommittee on Digital Assets, Financial Technology, and Inclusion hearing held on Nov. 15, Alison Jimenez, an economist and president of Dynamic Securities Analytics, Inc., provided insights into the context of crypto crime, breaking down illicit activities in the realm of digital assets.</p>
<p>John Reed Stark, a former Chief at the SEC Office of Internet Enforcement, suggests this is a breath of fresh air, as unlike other witnesses in the hearing, Jimenez was not bought or paid for by crypto firms.</p>
<h2 class="wp-block-heading" id="minimizing-exposure">Minimizing exposure</h2>
<p>In the&nbsp;<a href="https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=409030" target="_blank" rel="noopener noreferrer nofollow">hearing</a>, Jimenez shares that analysts will often contend that the transparency inherent in blockchain technology renders cryptocurrency less conducive to illicit financial activities.&nbsp;</p>
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<p>You might also like: <a href="https://crypto.news/russian-otc-crypto-swap-services-are-faking-aml-policies-research/" rel="noopener noreferrer nofollow"> Russian OTC crypto swap services are faking AML policies: research </a></p>
<p>Applying a similar line of reasoning, Jimenez&nbsp;<a href="https://docs.house.gov/meetings/BA/BA21/20231115/116579/HHRG-118-BA21-Wstate-JimenezA-20231115.pdf" target="_blank" rel="noopener noreferrer nofollow">shares</a>&nbsp;that various features of traditional financial instruments could be viewed in a similar light. For instance, the bulk and weight of physical currency, the potential reversibility of wire transfers, dollar limits on Zelle transactions, the fixed physical location of real estate, and the personal information printed on checks all present limitations.</p>
<p>Her conclusion is that no single factor serves as an absolute deterrent, and bad actors persist in exploiting various financial products for illicit purposes.</p>
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   <p lang="en" dir="ltr">An AML Expert's Dramatic and Meticulous Explanation of Why Criminals Love Crypto; Why Law Enforcement Remains Paralyzed to Stop Crypto-Crime Growth; and Why Chain-Analytics of Crypto-Crime is Mostly Bunk. Hallelujah.<br><br>Today, AML expert Alison Jimenez testifies before the<br>House… <a href="https://t.co/vPFvmIg410" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/vPFvmIg410</a></p>— John Reed Stark (@JohnReedStark) <a href="https://twitter.com/JohnReedStark/status/1724771919944114203?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">November 15, 2023</a>
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<p>The President of Dynamic Securities Analytics goes on to share that in response to increasing scrutiny from blockchain analytics and tracing efforts; various malicious actors have adapted their cryptocurrency transaction methods to minimize exposure.&nbsp;</p>
<h2 class="wp-block-heading" id="recognizing-limitations">Recognizing limitations</h2>
<p>In her conclusion, Jimenez shares that it is crucial to recognize their limitations as they, at most, capture just a fraction of the entire picture and cannot offer a comprehensive analysis of cryptocurrency use in illicit finance.&nbsp;</p>
<p>This is underscored by the assertion that if tracking cryptocurrency were as straightforward as suggested, the numerous ransomware attackers, numbering in the tens of thousands, would be consistently apprehended.</p>
<p>This hearing is believed to be much needed by many regulators, as further evidenced by a Jan.&nbsp;12 <a href="https://crypto.news/u-s-house-committee-to-probe-cryptos-role-in-illicit-activities/" target="_blank" rel="noopener noreferrer nofollow">report by Chainalysis</a>, which highlighted the prevalence of cryptocurrencies in various illicit activities.</p>
<p>Read more: <a href="https://crypto.news/sfc-releases-updated-aml-cft-checklist-for-virtual-asset-service-providers/" rel="noopener noreferrer nofollow"> SFC releases updated AML/CFT checklist for virtual asset service providers </a></p>

President of Dynamic Securities Analytics delivers testimony on crypto crime at House Subcommittee Hearing

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