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Sen. Elizabeth Warren on Wednesday introduced bipartisan laws to crack down on cryptocurrency cash laundering with a invoice known as the Digital Asset Anti-Cash Laundering Act of 2022.
The invoice, which is being co-sponsored by Sen. Roger Marshall of Kansas, is designed to “mitigate the dangers that cryptocurrency and different digital belongings pose to america’s nationwide safety by closing loopholes” within the present anti-money laundering system. The objective is to create compliance requirements for digital currencies that extra carefully resemble the foundations that govern the remainder of the monetary system.
For years, there’s been scant US regulation surrounding cryptocurrencies, however the bipartisan invoice seeks to vary that. For instance, the invoice would broaden sure Financial institution Secrecy Act obligations to digital belongings, such because the Know-Your-Buyer requirement, which mandates that banks validate the id of their clients.
Warren’s announcement of the invoice comes on the heels of probably the most high-profile cryptocurrency scandal so far: the collapse of FTX, beforehand the world’s second largest cryptocurrency trade, and subsequent arrest of its former CEO, Sam Bankman-Fried, who faces costs of cash laundering, amongst different issues.
In an announcement, Warren mentioned the cryptocurrency trade must be ruled by the identical kind of guidelines as different monetary establishments. “Rogue nations, oligarchs, drug lords, and human traffickers are utilizing digital belongings to launder billions in stolen funds, evade sanctions, and finance terrorism,” Warren mentioned in an announcement. “The crypto trade ought to comply with common sense guidelines like banks, brokers and Western Union, and this laws would guarantee the identical requirements apply throughout comparable monetary transactions.”
Cybercriminals raked in a document excessive of a minimum of $14 billion in digital belongings final yr, in accordance with an announcement from Warren’s workplace. The Massachusetts senator additionally participated within the Senate Banking Committee listening to on Wednesday inspecting the collapse of FTX.
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