Two US senators passed a new bill that amends the Cybersecurity Information Exchange Act of 2015 to include crypto companies in reporting the cyber threats they face. US lawmakers Cynthia Lummis of Wyoming and Marsha Blackburn of Tennessee revised the Cybersecurity Information Sharing Act with the goal of reducing criminal activities in the cryptospace.
The growing problems of cryptocurrencies such as cyber-attacks, high volatility and inflation apparently pushed global lawmakers to cover cryptocurrencies with adequate legislation to protect investors from harmful incidents in the industry. As a result, almost every jurisdiction has been designing and implementing a new regulatory framework for digital assets during this time.
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The revised bill seeks to connect crypto companies with government agencies
If passed, the proposed bill will pave the way for crypto-oriented businesses to report cyber threats directly to government agencies. As a result, crypto companies will get help from government authorities in the event of a data breach, exploit or ransomware attack. Flagging suspicious entities to law enforcement will also reduce risk.
Blackburn said in a statement;
Some bad actors have used cryptocurrency as a way to hide their illegal practices and avoid accountability. The Cryptocurrency Cybersecurity Information Exchange Act will update existing regulations to address this misuse directly. It will provide a voluntary mechanism for crypto companies to report bad actors and protect cryptocurrency from dangerous practices.
Crypto phishing attacks increased rapidly
Cryptocurrency crimes have seen an immense rise in recent months. According to the report of a blockchain security and research company, Certik, more than 2 billion have been wiped out in the second quarter of 2022 in crypto-related phishing attacks. It was a 170% increase with 206 cases compared to the 106 cases in the first quarter.
According to a recent study by cybersecurity experts at PrivacySavvy.com, despite being an old tactic, phishing is still one of the most effective and widely used cyberattacks, with phishing emails taking the top spot. According to experts, most Internet users have been attacked at least once. So, if you’ve ever been attacked online, you’re not alone.
However, it seems that the authorities are getting in on the act.
Unlike other lawmakers who sought to get rid of cryptocurrency, Lammus has believed in crypto asset legislation and focused on the industry over the past year. In June, he too published a bipartisan bill co-sponsored by New York Democrat Kristen Gillibrand. The 61-page bill covered guidelines for the potential range of crypto and its sub-sectors, including policies to support stablecoins and the tax obligations of crypto transactions.
US Senators’ Position on Cryptography
Given the huge growth of cryptocurrency and its use as a valuable financial tool, most US regulators have changed their minds in favor of a regulatory framework for cryptocurrency.
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Similarly, state lawmakers have drafted new rules in an attempt to take a comprehensive approach to bringing transparency and preventing illegal crypto operations. It has called crypto exchanges in the US under the Bank Secrecy Act (BSA) and platforms can register with the Financial Crime Enforcement Network (FinCEN).
In parallel, exchanges will comply with anti-money laundering (AML) obligations and follow anti-terrorist financing (CFT) obligations Biden’s executive order to build comprehensive policies for the digital assets sector.
Featured image from Pixabay and chart from TradingView.com