Senator Warren Warns of Crypto Money Laundering Risk: Introduces New Bill
• US Senator Elizabeth Warren has warned that criminals, rogue nations and drug lords are using cryptocurrency to launder money.
• Warren has proposed a bill called the Digital Asset Anti-Money Laundering Act of 2022 which aims to make crypto comply with the same money laundering rules as traditional finance.
• Critics of the bill say it will affect legitimate crypto activities, effectively banning digital assets in the US.
Senator Elizabeth Warren’s Warning
US Senator Elizabeth Warren says crypto is helping to facilitate all kinds of crime and illicit financial activity. The Massachusetts Senator warns that “rogue nations,” oligarchs and drug dealers are using cryptocurrency to fund their criminal regimes.
Digital Asset Anti-Money Laundering Act of 2022
Warren introduced the Digital Asset Anti-Money Laundering Act of 2022 in December of 2022. The bill aims to make the crypto industry comply with the same money laundering rules that apply to the traditional financial system. According to Warren, “Look, the rules should be simple: same kind of transaction, same kind of risk, means the same kind of rules.”
Criticism from Jake Chervinsky
The Blockchain Association’s chief policy officer Jake Chervinsky has criticized this bill saying it will also affect legitimate crypto activities as it will effectively ban digital assets in the US. He said, “Senator Warren’s bill would impose a de facto ban on crypto in the USA, criminalizing all sorts of legitimate activity like mining and staking, while doing nothing to actually combat illicit finance.”
Impact on Cryptocurrency Community
This proposed bill could have an impact on how people use cryptocurrencies around the world. It may limit some individuals’ access to certain digital assets or features associated with them and could lead to stricter regulation for those who do have access. Additionally, this could have implications for businesses that rely on cryptocurrency for various operations or investments they may be involved in.
It remains unclear what will happen with this proposed legislation as it still needs approval from Congress before being implemented into law. However, these warnings from Senator Elizabeth Warren highlight how important it is for governments around the world to take action against potential misuse of cryptocurrencies by criminals or rogue states.