Christy Goldsmith Romero, a member of the Commodity Futures Trading Commission (CFTC), has urged crypto companies to verify users’ digital identities.
The CFTC official made important statements in his keynote speech on Illegal Finance and Other Key Risks of Digital Finance at City Week 2023 held in London on April 25. Romero has called on crypto companies to reduce anonymity, saying that Congress is considering new laws that address anonymity and digital identity.
Emphasized the Importance of Financial Stability
Romero emphasized that governments and the industry must combat anonymity, which is the primary feature that makes cryptocurrencies attractive for illicit finance.
Underlining the importance of market integrity, national security and financial stability in the continuation of his speech, Romero said that these will not be compromised and the risks associated with digital assets must be managed. Stating that the way to reduce illicit financial risks is to address the identity verification issue, Romero continued his speech with the following words: “Although the public blockchain offers transparency and traceability, the use of mixers and anonymity-enhancing technology increases the potential for significant risk.”
According to Romero, crypto companies can maintain financial privacy for their customers without relying on mixers and anonymity-enhancing technologies.
Romero said Congress is considering new laws addressing anonymity and digital identity, adding that the U.S. government will prioritize preventing the use of crypto for illegal finance.
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