Sen. Warren Plans To Reintroduce Crypto Bill
• Democratic Sen. Elizabeth Warren has plans to reintroduce a cryptocurrency bill to crackdown on money laundering and terrorist financing.
• The bill, called the Digital Asset Anti-Money Laundering Act, would block financial institutions from using or transacting with digital asset mixers and extend know-your-customer requirements to certain crypto sectors like miners.
• Sen. Warren voiced her concerns during a hearing about bad actors in North Korea using crypto to evade sanctions, saying that this could threaten national security.
Overview of Bill
Democratic Senator Elizabeth Warren plans to reintroduce a cryptocurrency bill that will help crack down on money laundering and terrorist financing activities. The Digital Asset Anti-Money Laundering Act would block financial institutions from using or transacting with digital asset mixers and extend know-your-customer requirements to certain crypto sectors like miners. This bill is intended to bring the crypto industry into compliance with existing anti-money laundering laws while also countering terrorism financing efforts by bad actors such as those in North Korea.
North Korean Crypto Activity
During a Senate Armed Services Committee hearing, Sen. Warren voiced her concerns about North Korea’s use of cryptocurrencies for money laundering activities and evading sanctions, questioning whether this constituted a threat to national security according to Defence Intelligence Agency Director Scott Berrier who testified at the hearing as well. Berrier confirmed that North Korea’s use of cryptocurrencies does pose a threat as it helps them build their nuclear capacity which can be used for malicious purposes against other nations, making it a serious concern for global security efforts.
Previous Criticism of the Crypto Industry
Sen. Warren has long been critical of the cryptocurrency industry, calling it an industry “that is built to favor scammers”. She highlighted how big investors are able fund and hype up crypto projects that end up scamming mom-and-pop investors out of their money during congressional hearings last summer.
Conclusion
The introduction of this bill seeks to address many of these issues by bringing the crypto industry into compliance with existing anti-money laundering laws while also countering terrorism financing efforts by bad actors such as those in North Korea through various provisions such as blocking financial institutions from using or transacting with digital asset mixers and extending know-your customer requirements to certain crypto sectors like miners.