Crypto Poses a Growing Threat to National Security, U.S. Says

The emergence of cryptocurrencies presents opportunities for terrorists, rogue nations and other criminals who present a threat to U.S. national security, the Department of Justice said Thursday in a report.

Law enforcement is hampered by the worldwide reach of digital coins and the lack of consistent regulation across regions, which is “detrimental to the safety and stability of the international financial system,” the report found. Newer entities using crypto, such as peer-to-peer exchanges, kiosk operators and online casinos, don’t comply with record-keeping and reporting requirements, undermining investigators.

“Current terrorist use of cryptocurrency may represent the first raindrops of an oncoming...