Elizabeth Warren to present updated bill against money laundering through cryptocurrencies

Senator Elizabeth Warren of Massachusetts is preparing an expanded bill to regulate cryptocurrencies to combat money laundering.

Elizabeth Warren announced that she is working with Senator Roger Marshall of Kansas on a draft law aimed at broader regulation of the cryptocurrency ecosystem.. It will affect virtual asset service providers (VASPs), cryptocurrency wallet operators, as well as miners and validators, Warren said during a meeting of the US Senate Banking Committee.

The bill will expand reporting requirements to also cover U.S. users who transact more than $10,000 in crypto assets using offshore accounts.. The Ministry of Finance should check the registration of companies working with finance and cryptocurrencies, as well as their compliance with AML rules.

According to the senator, cryptocurrencies are considered the preferred payment method among drug dealers, who made over a billion dollars last year with cryptocurrencies.. Warren also mentioned North Korean hackers who, according to the United Nations (UN), stole more than $1 billion in crypto assets to fund their nuclear program.

“The current anti-money laundering regulations are not properly enforced by crypto-currency companies. Our bill will stop cryptocurrency crime by giving regulators the tools to stop the flow of cryptocurrencies to drug traffickers and countries like North Korea,” Warren said.

Last year, Warren introduced a bill allowing the US government to impose sanctions even on foreign crypto companies that work with users from the US Treasury blacklist.. However, the cryptocurrency community has criticized this bill, calling it undemocratic.