US Senators Join The Anti Money Laundering Law For Cryptocurrencies

Senator Elizabeth Warren introduced the anti-crypto money laundering law. (Photo; Twitter @SenWarren)

JAKARTA Cryptocurrencies have experienced significant growth in recent years. However, since the collapse of the leading crypto exchange, FTX, the crypto market has been hit hard. On the other hand, cryptocurrencies are also often used by criminals for illegal transactions, one of which is on the dark web.

Therefore, Senators Elizabeth Warren and Roger Marshall decided to introduce the Anti-Digital Asset Money Laundering Act. This rule aims to introduce some regulations that are considered very difficult and unlawful.

In the midst of a US Senate poll this week on the fall of the popular FTX crypto exchange, news of suggested rules did not go well with crypto enthusiasts who thought the move was a dictator.

The bill seeks to position know-your-customer (KYC) requirements on blockchain providers and developers working in the United States. The rule also includes developers designing software for decentralized networks and even miners and validators supporting the network.

Warren and Marshall's bills will require the Financial Crime Enforcement Network (FinCEN) to consider crypto wallet service providers, miners and validators, and additional network users as "money service businesses", Warren's official statement said.

According to Warren, the crypto industry must be regulated by policies from a number of parties such as banks, brokers and Western Unions. Bipartisan bills will help close cryptocurrency laundering issues and support implementation to better secure US national security.

Protests Against New Bills

Although the bill will only be introduced, it has received opposition from a number of crypto industries, one of which is from the Coin Center Research Director, Peter Van Valkenburgh. According to him, the bill curbs technology and privacy capabilities in the crypto industry.

Furthermore, Valkenburgh considered the bill a form of rejection of liberal values because there was no strong reason to put each individual under surveillance.

Senator Warren submitted a bill not long after the bankruptcy of FTX some time ago. FTX founder Sam Bankman-Fried was officially arrested by the authorities on criminal charges from US regulators, the SEC and the CFTC.

Commenting on this, Coin Center officials say that the new bill introduced by senator Warren will not prevent the possible future fall of other crypto companies as is the case with FTX.