WASHINGTON—The House of Representatives has passed the Financial Technology Protection Act, which is designed to combat illicit activities that use fintechs, such
as digital currencies.
The Financial Technology Protection Act (H.R. 56) was introduced by Congressmen Stephen Lynch (D-MA) and Ted Budd (R-NC) and garnered bipartisan support. The bill establishes an “Independent Financial Technology Task Force” to combat the use of financial technologies, or fintech, like digital currencies, to fund terrorism, Crowdfund Insider explained.
According to the summary of the bill, the legislation:
- Provides for the investigation of new financial technologies (e.g., digital currencies) and their use in terrorism and other illicit activities
- Establishes the Independent Financial Technology Task Force to Combat Terrorism and Illicit Financing, which must research terrorist and illicit use of new financial technologies and issue an annual report
- Directs the Department of the Treasury to provide a reward for a person who provides information leading to the conviction of an individual involved with terrorist use of digital currencies
- Establishes the Fintech Leadership in Innovation and Financial Intelligence Program to support the development of tools and programs to detect terrorist and illicit use of digital currencies