Crypto Roundup: CIA Eyes Bitcoin as National Security Concern, EU Targets Privacy Coins, and U.S. Cracks Down on Huione Group

Here’s What Happened in Crypto Today

The crypto world is facing increasing scrutiny and regulation as global governments ramp up their engagement with digital assets. From the CIA’s strategic focus on Bitcoin to the EU’s push to ban anonymous wallets, and the U.S. Treasury’s crackdown on crypto-linked criminal networks — today’s developments highlight the growing tension between crypto innovation and regulatory oversight.

CIA: Bitcoin Is a National Security Priority

Bitcoin is no longer just an emerging financial asset — it's now considered a strategic national interest, according to Michael Ellis, Deputy Director of the Central Intelligence Agency (CIA).

In a recent interview on Anthony Pompliano’s podcast, Ellis revealed that the CIA is actively working with law enforcement and using Bitcoin as part of its data collection and counter-intelligence operations. He emphasized that cryptocurrencies, particularly Bitcoin, are here to stay, stating:

“Bitcoin is here to stay — cryptocurrency is here to stay. As you know, more and more institutions are adopting it, and I think that is a great trend.”

Ellis also framed crypto as a competitive domain between geopolitical rivals:

“It’s another area of competition where we need to ensure the United States is well-positioned against China and other adversaries.”

While the comments validate Bitcoin’s maturity and growing institutional legitimacy, they also underscore rising government involvement — a development at odds with the original decentralized ethos of cryptocurrency.

The AML Handbook. Source: EUCI

EU to Ban Anonymous Wallets and Privacy Coins by 2027

The European Union has taken a firm stance against crypto anonymity with the upcoming Anti-Money Laundering Regulation (AMLR), which will outlaw anonymous cryptocurrency accounts and privacy-focused coins like Monero (XMR) and Zcash (ZEC) starting in 2027.

According to Article 79 of the AMLR, crypto-asset service providers, credit institutions, and financial firms will be prohibited from maintaining anonymous accounts or transacting with privacy-enhancing tokens. The European Crypto Initiative (EUCI) highlighted that the law also extends to anonymous bank and payment accounts, passbooks, safe deposit boxes, and wallets using privacy technologies.

This regulation represents one of the most aggressive anti-anonymity moves globally and signals a shift toward full transparency across Europe’s financial and digital asset systems.

U.S. Treasury Targets Huione Group for Crypto-Fueled Crimes

In a major move against crypto-related criminal activity, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed a ban on Cambodia-based Huione Group from accessing the U.S. financial system.

Source: Chainalysis

The Treasury accuses the conglomerate of being a hub for illicit finance, laundering over $4 billion in criminal proceeds between August 2021 and January 2025, including millions tied to North Korea’s Lazarus Group and various crypto scams.

Huione’s business network includes:

• Huione Pay PLC (payments),

• Huione Crypto (crypto exchange),

• Haowang Guarantee (online illicit marketplace), and

• a proprietary stablecoin USDH, which the Treasury says is designed to evade freezing and facilitate money laundering.

Treasury Secretary Scott Bessent condemned the group, calling it the "marketplace of choice for malicious cyber actors," and confirmed that the proposed ban will undergo a 30-day public comment period before taking effect.

Final Thoughts

Today’s events reflect the growing role of cryptocurrency in international affairs, national security, and financial regulation. From U.S. intelligence agencies actively integrating Bitcoin into counter-intelligence, to the EU legislating away anonymity, and FinCEN dismantling global illicit crypto networks, the industry is entering a new era of scrutiny and global policy impact.