Coinbase urges US government to adopt blockchain and AI to combat cryptocurrency crime

Coinbase recently submitted a letter to the U.S. Treasury Department, calling on the government to employ blockchain analysis, artificial intelligence, and other modern technologies to combat financial crimes in the crypto sector. Chief Legal Officer Paul Grewal stated in the October 17th letter that as money laundering schemes become increasingly sophisticated, law enforcement agencies need corresponding technological means to combat them. Coinbase recommends that the government provide regulatory exemptions under the Bank Secrecy Act for companies using AI and API monitoring tools, and issue guidance recognizing decentralized identity and zero-knowledge proofs as effective forms of customer verification. Meanwhile, Jim Harper, a senior fellow at the American Enterprise Institute, a think tank, proposed establishing a communication system that would allow law enforcement agencies to directly request investigative information from crypto companies, thereby reducing the existing extensive and costly financial surveillance system. (Cointelegraph)