Senator Elizabeth Warren has made a promise to reintroduce the Anti-Money Laundering Act to guard Digital Assets. The bill was first introduced in December 2022 and co-sponsored by Senator Roger Marshall.
Warren, a vocal critic of the crypto industry gave the statement while speaking on how to strengthen the industry’s barrier at a Senate Banking Committee hearing held on Tuesday.
Warren’s proposed bill is expected to help in reducing the risks digital assets pose to national security. She stated that this is achievable by ensuring the digital asset ecosystem complies with the AML and Counter-Terrorism Financing (AML/CFT) frameworks that govern the larger financial system.
The bill would assist in closing a significant hole in “unhosted” digital wallets, which permits users to avoid AML and sanctions checks if it eventually pulls through.
In addition, the bill would also extend to the Bank Secrecy Act (BSA) responsibilities in addition to digital asset wallet providers, miners, validators, and Know-Your-Customer (KYC) requirements.
Sen Warren Pushes for Digital Assets Bill Regarding Cybercrime
The high adoption rate of cryptocurrency in the US has made the industry susceptible to attacks. Warren, therefore, proposed a Ransom Disclosure Act legislation, to help prevent investors from cyberattacks.
The Senator introduced this legislation in response to the rise in unlawful financial activity in the country. It is worth mentioning that the crypto industry recorded a loss of about $3.5 billion from more than 125 crypto attacks last year.
Specifically, Warren claims the bill will help in taming the cyberattacks in rogue nations like North Korea, Iran, and Russia which have some of the world’s most active cybercriminals. Notably, North Korean hacking organizations including Lazarus Group were responsible for the loss of $1.7 billion in cryptocurrencies in 2022.
Warren also highlighted that victims in the U.S. would be bound by this bill to disclose ransoms within 48 hours of payment through a website that the DHS will set up. The bill will also fund research into the relationship between cryptocurrencies and ransomware attacks.
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