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Crypto Poses a Growing Threat to National Security, U.S. Says

  • Justice Department sees ‘oncoming storm’ of criminal activity
  • Investigators slowed by patchwork of regulations, report finds
server crypto computer
Photographer: Andrey Rudakov/Bloomberg

The emergence of cryptocurrencies presents opportunities for terrorists, rogue nations and other criminals who present a threat to U.S. national security, the Department of Justice said Thursday in a report.

Law enforcement is hampered by the worldwide reach of digital coins and the lack of consistent regulation across regions, which is “detrimental to the safety and stability of the international financial system,” the report found. Newer entities using crypto, such as peer-to-peer exchanges, kiosk operators and online casinos, don’t comply with record-keeping and reporting requirements, undermining investigators.