Senator Warren proposes stricter crypto regulations
Senator Elizabeth Warren has introduced a bill in the US to tighten cryptocurrency regulations to combat money laundering and illegal activities.
The Digital Asset Anti-Money Laundering Act would extend existing anti-money laundering laws and know-your-customer (KYC) regulations to digital asset entities.
The bill requires MSBs, crypto exchanges, wallet providers, miners, and validators to verify clients’ identities and report suspicious transactions, reflecting the duties of traditional banks.
It also mandates identity verification for large peer-to-peer cryptocurrency transactions through unregulated intermediaries or unhosted wallets not associated with a regulated service.
The bill is urgently needed as rogue nations like Iran, Russia, and North Korea have turned to digital assets to evade sanctions and fund illegal weapons programs.
Furthermore, Supporters argue that extending anti-money laundering standards to digital assets will create safeguards for states and users, while critics argue it could compromise anonymity and privacy.
(With inputs from Shikha Singh)
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