The US Department of Justice (DoJ) has released a comprehensive report on how it views the legality of cryptocurrency and blockchain. The report is supportive of blockchain development, however the DoJ is suspicious of tokens that preserve personal privacy. The report states that the use of Dash, Monero and ZCash as being indicative of criminal activity, and cause to be suspicious of anyone who uses these tokens. In addition to individuals that use privacy-focused tokens, the DoJ is also aware that nations like Iran and North Korea are active in the crypto space, and also on the darknet. Crypto crimes such as hacking and theft are also addressed, and are seen criminal acts by the DoJ.
Why it matters: The United States has been lagging in the crypto regulation space. Despite high profile cases, such as the Telegram ICO, there has been little in the way of concrete ideas from the US government on how cryptos will be regulated. With this report, the DoJ has created a road map for how it will prosecute crypto crime, and also how it views tokens that can't be openly inspected by the government. With specific privacy tokens being names in the report, we may see additional action taken by the government to limit their use, or have them delisted by crypto exchanges in the USA.
