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US Attorney General Eric Holder says DoJ hesitant of bitcoin

The US government is concerned that bitcoins could give criminals the perfect opportunity to launder money in a quiet, anonymous manner.

Published Tue, Apr 8 2014 5:18 PM CDT   |   Updated Mon, Oct 19 2020 8:15 PM CDT

The United States government is worried that the bitcoin cryptocurrency can be used by criminals to help commit money laundering, and will take creative strategy by lawmakers, according to US Attorney General Eric Holder.

US Attorney General Eric Holder says DoJ hesitant of bitcoin | TweakTown.com

Some investors have embraced bitcoin as a viable digital currency, though the demise of Mt. Gox and other exchange services have alarmed lawmakers. Bitcoin exchange operators are under close federal scrutiny, as the government continues to look at new methods criminals might use to move funds quietly.

"The department is committed to innovating alongside this new technology in order to ensure our investigations are not impeded by any improvement in criminals' ability to move funds anonymously," Holder said during a recent House Judiciary Committee. "Virtual currencies can pose challenges for law enforcement given the appeal they have among those seeking to conceal illegal activity. This potential must be closely considered."

The IRS recently ruled that bitcoins are technically property and not real currency, while supporters still hope to see bitcoins launch a mini-financial revolution.

An experienced tech journalist and marketing specialist, Michael joins TweakTown looking to cover everything from consumer electronics to enterprise cloud technology. A former Staff Writer at DailyTech, Michael is now the West Coast News Editor and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog, AlamedaTech.com, while he looks to remain busy in the tech world.

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