Senator Elizabeth Warren just announced a bill to even further strengthen the cryptocurrency field to avert dollars laundering.
On the evening of December 14, Senator Elizabeth Warren representing the state of Massachusetts announced a new bill for the cryptocurrency field, titled the “Anti-Money Laundering Act for Digital Assets”, aimed at strengthening the measures to avert dollars laundering as a result of cryptocurrencies.
Rogue nations, oligarchs and drug lords use cryptocurrencies to launder billions, evade sanctions and finance terrorism. My bipartisan bill puts prevalent sense principles in spot to enable fill the crypto dollars laundering loopholes and guard our nationwide protection.https://t.co/n69LZfX8zX
— Elizabeth Warren (@SenWarren) December 14, 2022
Specifically, the bill needs to lengthen identity verification (KYC) specifications to crypto wallet services suppliers, miners, and other participants in the blockchain network. The law also prohibits interaction with protocols that enable combining transactions to hide background. One instance is Tornado Cash, the Ethereum trading mixer app that was blacklisted by the US in August.
Mrs Warren wrote:
“The cryptocurrency industry should follow the usual rules that apply to banks, brokers and Western Union, and this bill will ensure that those rules also apply to financial transactions. exactly the same.”
The senator also needs the US Treasury Department to produce a evaluation system to categorize crypto companies into distinct services suppliers this kind of as banking institutions or dollars transmitters, for far more fair management functions. Additionally, the Securities and Exchange Commission (SEC) and Asset Futures Trading Commission (CFTC) ought to also generate separate due diligence policies for entities that fall below their regulatory jurisdiction.
Not stopping there, yet another fiscal regulator, the Financial Crimes Enforcement Network (FinCEN), is proposing to situation a new regulation, requiring banking institutions and dollars transfer companies to report and retailer information about transactions and partners utilizing the KYC crypto wallets or are crypto wallets from territories that do not comply with US anti-dollars laundering laws.
US citizens when conducting cryptographic transactions overseas with a worth of USD ten,000 or far more will be essential to declare the information and facts to the authorities. Crypto ATM suppliers in the US are also essential to confirm consumer information and facts, report the geographic spot of the machine, and the variety of ATMs put in to the government.
Explaining the relatively draconian proposals contained in the bill, Senator Warren stated that he himself attempted to warn the US Senate about the unsafe loopholes that exist in the cryptocurrency sector, and the latest collapse of the FTX exchange has even further confirmed his issues.
However, the bill will most most likely only be talked about in the new session of the Senate in January 2023.
In the United States, there are also a lot of draft cryptocurrency regulation expenses presented to Congress following the executive buy requiring regulation of the cryptocurrency field issued by President Biden earlier this yr. Most notable are the expenses to regulate the total cryptocurrency field, the bill to regulate stablecoins, and the bill to grant cryptocurrency management rights to the CFTC and to restrict the growth of crypto-led DeFi. ‘former FTX CEO Sam Bankman- Fried advisor . There is also a proposal to tax cryptocurrency “brokers” pending clarification from the US Treasury Department.
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