New Crypto Bill Demands Regulatory KYC for Wallets, Miners…
According to Senator John Hickenlooper, it is necessary to apply the same laws guiding the operation of traditional banks to the crypto industry.
The continuous growth of the crypto ecosystem reportedly poses a threat to financial stability, forcing the US authorities to propose a bipartisan Digital Asset Anti-Money Laundering Act. Recently, United States Senator Elizabeth Warren announced the expanded coalition of Senate support for the Act.
Senators Warnock, Butler, Van Hollen, Hickenlooper, and Luján have joined the bill as cosponsors. With recent reports that crypto is used to finance terrorism while facilitating the operations of ransomware gangs and acting as a tool for evading sanctions, Warren believes that new laws are needed to crack down on these illicit usages. The new bill would demand a Know-Your-Customer (KYC) verification for wallets, wallet providers, miners, etc.
The lack of basic legal safeguards around crypto opens up Americans to countless risks. What’s more, crypto has become the payment method of choice for terrorist organizations, drug cartels, and authoritarian regimes to fund their illicit activities, said Senator Van Hollen.
Senator Hickenlooper explained that the safeguard for banks to ensure user protection should be applied to the crypto industry. According to him, this would protect safe and transparent innovation. The Digital Asset Anti-Money Laundering Act is expected to address the major issues with unhosted digital wallets and strengthen the enforcement of compliance.
Cryptocurrencies operate with little to no oversight. This leaves consumers vulnerable and creates new ways for bad actors to finance terrorism and drug trafficking. I’m proud to join my colleagues in this effort to protect people from the criminal activity that unregulated crypto use has enabled, added Senator Luján.
The bill has received support from several organizations and associations, including The Bank Policy Institute, Transparency International U.S., AARP, and the National Consumer Law Center. Critics argue that the proposed bill could undermine the privacy aspect of cryptocurrencies, which has been a motivating factor for many users.
Senator Warren has been an active advocate for a bill that mitigates the threats posed by the crypto industry. In a recent speech, she warned about the risks of crypto being used as a tool to evade sanctions and fund illegal activities. She highlighted North Korea’s alleged theft of $3 billion worth of crypto and its use to finance their nuclear weapons program.
While the proposed bill aims to bring transparency and regulation to the crypto world, concerns about privacy and the original ideals of cryptocurrencies remain. As the debate continues, the future of the crypto industry hangs in the balance, awaiting a regulatory framework designed to balance security and innovation.
In conclusion, the bipartisan Digital Asset Anti-Money Laundering Act could introduce a wave of regulatory changes in the crypto industry, demanding KYC verification for wallets, wallet providers, miners, and more. Supporters believe it will protect against illicit activities, while critics fear it may compromise the privacy and privacy-centered features of cryptocurrencies. The discussions surrounding this bill will shape the future of the crypto industry in the United States and potentially influence global regulations.
