Here’s what happened in crypto today
Today in crypto, the CIA is treating Bitcoin a national security issue, the EU is set to ban anonymous wallets and privacy coins, and the US Treasury is cracking down on the Huione Group for alleged criminal activity tied to crypto.Bitcoin is a matter of national security — Deputy CIA directorThe US Central Intelligence Agency is increasingly incorporating Bitcoin (BTC) as a tool in its operations, and working with the cryptocurrency is a matter of national security, Michael Ellis, the agency’s deputy director, told podcast host Anthony Pompliano.In an appearance on the market analyst and investor’s show, Ellis told Pompliano that the intelligence agency works with law enforcement to track BTC, and it is a point of data collection in counter-intelligence operations. Ellis added:"Bitcoin is here to stay — cryptocurrency is here to stay. As you know, more and more institutions are adopting it, and I think that is a great trend. One that this administration has obviously been leaning forward into.""It's another area of competition where we need to ensure the United States is well-positioned against China and other adversaries," Ellis said.Although Ellis's comments point to Bitcoin maturing as an asset, they also reflect the increased involvement of governments and institutions in Bitcoin and cryptocurrencies. This increased involvement runs contrary to the libertarian and cypherpunk ethos originally inherent in crypto.European Union to ban anonymous crypto and privacy tokens by 2027The European Union is set to impose sweeping AML rules that will ban privacy-preserving tokens and anonymous cryptocurrency accounts from 2027.Under the new Anti-Money Laundering Regulation (AMLR), credit institutions, financial institutions and crypto asset service providers (CASPs) will be prohibited from maintaining anonymous accounts or handling privacy-preserving cryptocurrencies, such as Monero (XMR) and Zcash (ZEC).“Article 79 of the AMLR establishes strict prohibitions on anonymous accounts [...]. Credit institutions, financial institutions, and crypto-asset service providers are prohibited from maintaining anonymous accounts,” according to the AML Handbook, published by European Crypto Initiative (EUCI).The AML Handbook. Source: EUCIThe regulation is part of a broader AML framework that includes bank and payment accounts, passbooks and safe-deposit boxes, “crypto-asset accounts allowing anonymisation of transactions,” and “accounts using anonymity-enhancing coins.”US wants to cut off Huione over crypto crimeThe US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) on May 1 proposed blocking the Cambodia-based Huione Group from the US banking system, accusing it of helping North Korea’s state-backed Lazarus Group to launder crypto.Huione Group comprises a network of businesses, which includes payment service platform Huione Pay PLC, the crypto exchange Huione Crypto, and Haowang Guarantee, an online marketplace offering illicit goods and services.Treasury Secretary Scott Bessent said the conglomerate established itself as the “marketplace of choice for malicious cyber actors” like the Lazarus Group, who have “stolen billions of dollars from everyday Americans.”Source: ChainalysisFinCEN said Huione laundered at least $4 billion worth of illicit proceeds between August 2021 and January 2025, including over $36 million from crypto pig butchering scams and $37 million worth of crypto for North Korea.It has also created a US dollar-pegged stablecoin, the US Dollar Huione (USDH), which FinCEN said cannot be frozen and helps to carry out money laundering activities.The proposed rule is subject to a 30-day public comment period before it can take effect.
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