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Senator Warren Raises Concerns About Risks from Foreign-Owned Cryptocurrency Mining Operations in the U.S.
High-profile crypto critic, Democratic Senator Elizabeth Warren, has advocated for robust anti-money laundering measures concerning foreign-owned crypto mining operations based in the U.S.
During a Senate Committee on Banking, Housing, and Urban Affairs hearing on July 25, she highlighted the dangers associated with these foreign crypto mining activities. She primarily focused on the environmental and national security risks linked to U.S. crypto mining facilities operated by foreign entities.
“More and more, foreign companies are establishing crypto mining facilities on American soil,” she stated at the hearing.
“Crypto mining is detrimental to the environment, and it can also present national security challenges.”
Citing a report from a blockchain analytics firm, she mentioned that one-third of the mining facilities in the U.S. are owned by citizens of the People’s Republic of China. Some of these operations have direct connections to individuals affiliated with the Chinese government, Sen. Warren added.
“In May, following a recommendation from CFIUS, President Biden issued an order mandating the Chinese national owners of a crypto mining facility in Wyoming named MineOne to divest their ownership and remove the mining equipment from the site,” she remarked.
Warren emphasized that these facilities are “warehouses filled with computers that handle crypto transactions and generate new crypto tokens.”
“They’re noisy, they generate significant heat, and they consume a large amount of electricity, which can potentially overload the power grid. Numerous countries have prohibited crypto mining, prompting more foreign companies to establish operations here in the United States.”
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Crypto Mining as Espionage, a Possible Threat: Warren
During the hearing, the Senator inquired whether crypto mines could be used to surveil U.S. military activities. Paul Rosen, Assistant Secretary of the Treasury for Investment Security, responded that such advanced equipment could indeed serve espionage purposes.
“Foreign adversaries are utilizing crypto mines to monitor U.S. military operations,” Sen. Warren asserted. She underscored that this represents an “evident national security risk” and a danger to the nation’s energy infrastructure.
Warren also expressed concern that Chinese-operated U.S.-based Bitcoin mines consume energy equivalent to that which would power 1.5 million homes, referencing an analysis.
She raised a significant issue, emphasizing that foreign companies are secretly acquiring U.S. crypto mines by making payments in cryptocurrency.
“Crypto enables them to circumvent our conventional banking system and the anti-money laundering regulations designed to prevent any anonymous foreign funds from entering the U.S.”
Consequently, Sen. Warren has called for stringent regulations from the Treasury Department. She advocates for measures to prevent the use of crypto for evading sanctions and money laundering related to mining.
The post Sen. Warren Questions Threats Posed by Foreign-Owned Crypto Mining Sites in US appeared first on Cryptonews.
