USA halts prosecution of cryptocurrencies and NFTs

At Donald Trump's request, the US Department of Justice is halting all investigations and charges against service providers in the cryptocurrency, blockchain, and NFT (non-fungible token) sector. This also applies to money laundering and other crypto services for terrorists, organized criminals and people on sanctions lists. This was ordered by US Deputy Attorney General Todd Blanche at Donald Trump's request. The declared aim is to grow the cryptocurrency industry. Trump is the US President and seller of a cryptocurrency and NFTs. Unlike his predecessors in office, he has neither disclosed his finances nor handed over his private transactions to trustees.

Anyone who provides unlicensed financial services in the cryptocurrency sector, sells investments without registration, acts as a broker without registration, or circumvents regulations against terrorist financing or money laundering as a service provider should not be prosecuted – unless there is proof that they were aware of the legal situation and deliberately violated it. However, there will hardly be any such evidence, as there will no longer be any investigations.

To ensure this, the relevant departments will be abolished. The Ministry of Justice's National Cryptocurrency Enforcement Team (NCET), which is responsible for prosecuting crypto crimes, has been disbanded with immediate effect. The Market Integrity and Major Frauds Unit, which is responsible for financial crimes and serious fraud, will now deal with immigration cases and fraud in public tenders.

Ignorance protects against punishment

The US Attorney's Office “will target cryptocurrency platforms, mixers and money laundering services, as well as offline wallets, more for the actions of their customers or unknowingly violating regulations,” Blanche writes in his order. However, the customers themselves could still be prosecuted. People who defraud or steal from crypto speculators, exploit errors in so-called smart contracts or illegally infiltrate crypto platforms will not be given a free pass either. However, as crypto service providers have little reason to identify their customers or keep an eye out for suspicious transactions, the remaining cases are also likely to come to nothing in many cases.

However, the Ministry of Justice's decree does not give criminals any legal entitlement. Offenders who have made themselves unpopular with the US government could therefore still be prosecuted. Regarding the dropped charges, it will depend on the specific form of the dismissal of proceedings whether the case could be reopened at a later date. There are also possible statutes of limitations. Traditional banks and stockbrokers will not be given free rein; they will still have to identify their customers and take action against terrorist financing and money laundering.

The Department of Justice will also participate in a working group ordered by Trump to submit legislative proposals to promote the “growth and use of digital assets, blockchains and related technology in all sectors of the economy”.

• The Judicial decree

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