Coinbase urges the U.S. government to adopt blockchain and AI technology to combat cryptocurrency crime

ChainCatcher news, according to Cointelegraph, the cryptocurrency exchange Coinbase recently submitted a comment letter to the U.S. Treasury, urging the government to adopt blockchain analysis, artificial intelligence, and other modern technologies to combat financial crime in the crypto space.

Chief Legal Officer Paul Grewal pointed out in the letter that as money laundering schemes become increasingly complex, law enforcement agencies need corresponding technological means to counter them. Coinbase suggested that the government provide regulatory exemptions under the Bank Secrecy Act for companies using AI and API monitoring tools, and issue guidelines recognizing decentralized identity and zero-knowledge proofs as valid forms of customer verification.

Meanwhile, Jim Harper, a senior fellow at the American Enterprise Institute, proposed establishing a communication system that would allow law enforcement agencies to directly query cryptocurrency companies for investigative information, in order to reduce the existing broad and costly financial monitoring system.