Blockchain & Crypto

IRS Seeks Partnership with Crypto Companies to Fight Crime

Top Internal Revenue Service (IRS) law enforcer said the tax-collection agency wants to cooperate with the digital assets industry to fight crypto-related crime

IRS Crypto

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As reported by the Wall Street Journal, Thomas Fattorusso, the special agent in charge of IRS Criminal Investigation’s New York office, the agency considers establishing ties with the crypto industry players to combat financial crime.

The top official acknowledged that the crypto sector is “here to stay”. Along with many opportunities for consumers, cryptocurrencies are often used by criminals to launder money or avoid sanctions. Per recent reports, cybercriminals have used cross-chain bridges, DEXs and coin swaps to launder at least $4 billion worth of illicit crypto proceeds since the beginning of 2020.

Mr Fattorusso believes law enforcement agencies shouldn’t shy away from emerging technology, but “embrace it”. By embracing, he means cooperation with the crypto players. That relationship could be beneficial for both parties and “symbiotic” in a way.

However, federal agencies and crypto-related businesses are still seeking healthy forms of cooperation at present. For instance, some talented employees who worked for federal agencies later leave to join private companies operating in the crypto sector. Such professionals are better aware of the federal cybersecurity requirements and may even potentially assist in investigating cybercrimes.

The opposite cases also occur. People from the private crypto sector may come to work for the regulators. These talents have precious insights as for the way crypto exchanges and similar digital asset entities work. Thus, their unique expertise and connections are also helpful in combatting crypto crimes.

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