- U.S. Senator Warren focused crypto, citing the necessity for powerful anti-money laundering laws.
- Crypto crime shifts regardless of an general lower in illicit transactions
Senator Elizabeth Warren has once more reignited the talk on cryptocurrency regulation. Warren’s assertion, delivered by way of X (previously Twitter), cites a current Authorities Accountability Workplace (GAO) report.
A brand new @USGAO report confirms that rogue nations are utilizing crypto to dodge sanctions and undermine our nationwide safety.
It’s time for crypto to comply with the identical anti-money laundering guidelines as everybody else. I’ve obtained a invoice to make it occur. https://t.co/TUX2sJ8HR0
— Elizabeth Warren (@SenWarren) January 21, 2024
The report primarily focuses on how digital property, corresponding to Bitcoin (BTC) and different digital currencies, pose dangers to the implementation and enforcement of U.S. sanctions. Furthermore, it goes on to elucidate the elements that contribute to the partial mitigation of the dangers.
In her assertion, Senator Warren additionally confused the significance of bringing cryptocurrency operations below the identical anti-money laundering (AML) guidelines that govern different monetary entities.
Warren’s crypto poison invoice
Senator Warren, a vocal critic of each cryptocurrencies, has proposed the “Digital Asset Anti-Cash Laundering Act.” It goals to tighten regulations on cryptocurrency in relation to illicit finance.
If enacted, it could broaden Financial institution Secrecy Act necessities, together with know-your-customer (KYC) guidelines, to cowl numerous crypto business gamers corresponding to miners, validators, and pockets suppliers.
In January 2024, throughout a Senate Banking, Housing, and City Affairs Committee listening to, Senator Warren additionally highlighted the urgency of addressing crypto’s function within the unlawful fentanyl commerce. She emphasised that present gaps in AML legal guidelines have inadvertently supplied drug cartels and traffickers with a way to flow into their funds, thereby exacerbating the opioid disaster.
“Crypto is enabling rogue nations, drug lords, ransomware gangs, and fraudsters to launder billions in stolen funds, evade sanctions, fund unlawful weapons packages, and revenue from devastating cyberattacks.”
The progress of the Digital Asset Sanctions Compliance Enhancement Act will likely be carefully watched by each the cryptocurrency business and policymakers. This act is critical as it could set up a benchmark for a way digital property are regulated in the US, particularly regarding points associated to nationwide safety.
Crime and crypto
An evaluation of the 2024 crypto crime traits by Chainalysis highlights key traits in cryptocurrency-related crime.
Supply: Chainalysis
In 2023, there was a notable lower within the general worth acquired by illicit cryptocurrency addresses. The quantity dropped from $39.6 billion in 2022 to only $24.2 billion.
Curiously, whereas scamming and stolen funds noticed a major discount, ransomware and darknet market actions skilled development. The report additionally notes a shift within the varieties of property utilized in crypto crimes. Stablecoins now dominate illicit transactions, changing Bitcoin’s earlier dominance.
Crypto’s widespread adoption
The senator’s push for regulation comes at a pivotal time when the
popularity and adoption of cryptocurrencies are at an all-time excessive. In line with Statista, international cryptocurrency adoption surged by practically 190% between 2018 and 2020 and continued to speed up in 2022.
As of this writing, there are over 420 million crypto homeowners worldwide, as reported by Triple-A. CoinMarketCap additionally reported a complete international crypto market cap of $1.6 trillion at press time.
Lastly, Fortune Business Insights predicts the worldwide cryptocurrency market will develop from $910.3 million in 2021 to $1,902.5 million in 2028 at an 11.1% compound annual development fee (CAGR).
