Democratic Senator Elizabeth Warren plans to reintroduce a crypto bill with the aim of cracking down on money laundering and terrorist financing. During a Senate Armed Services Committee hearing, Warren announced that she would reintroduce the Digital Asset Anti-Money Laundering Act.
The Purpose of the Bill
The Digital Asset Anti-Money Laundering Act seeks to ensure that the crypto industry complies with the existing anti-money laundering legislation, while also countering terrorism financing. Warren emphasized that the bill is not about Securities and Exchange Commission (SEC) regulation or cracking down on crypto investor scams. Instead, it is about law enforcement and national security to keep the country safe.
The Provisions of the Bill
The bill would prohibit financial institutions from using or transacting with digital asset mixers. These tools mix together cryptocurrencies from different users to hide the funds’ origins. Additionally, the bill extends the know-your-customer requirements to certain crypto sectors, such as miners.
Concerns over North Korea
During the hearing, Warren also voiced her concerns over bad actors in North Korea using crypto to evade sanctions. She questioned Defence Intelligence Agency Director Scott Berrier about North Korea and other countries’ crypto money laundering activities. Berrier testified that North Korea launders billions of dollars worth of crypto and funnels it into its nuclear program, which is a threat to national security.
Senator Warren has long been a critic of the crypto industry, calling it an industry “built to favor scammers.” She claims that big investors are funding and hyping crypto projects that scam “mom-and-pop investors.”
In conclusion, the reintroduction of the Digital Asset Anti-Money Laundering Act shows the US government’s commitment to combatting money laundering and terrorist financing in the crypto industry. It also highlights that the government is taking the necessary steps to ensure that the industry is compliant with anti-money laundering regulations.