Elizabeth Warren along with other US Senators has proposed a new bill called the Digital Asset Anti-Money Laundering Act of 2022 to crack down on the use of cryptocurrency for laundering money within the country, CNET reports.
The US is among the few countries where due to a lack of practical regulatory framework, virtual currency is used for white-collar crimes.
Although blockchain feeds every transaction on a public ledger, the address alone isn’t enough to know who is sending whom. If anyone uses mixer platforms like Tornado Cash, then it’s almost impossible to track down the sources.
The recent FTX crash has also raised alarms because the exchange was actively operating in the country without any restrictions, costing millions of dollars in loss to American investors.
On Wednesday, Warren announced a bill to regulate cryptocurrency the same way as other financial sectors.
“Rogue nations, oligarchs, drug lords, and human traffickers are using digital assets to launder billions in stolen funds…” she stated that this money could lead to finance terrorism in the US.
She wants to track down cryptocurrency money laundering by applying the same sanctions applied to traditional investment banks and other finance platforms within the country.
Warren also quoted that around $14 billion worth of digital assets have been lost over the year, and cybercrime peaked highest among others.
As more people adopt Web3 and metaverse in their daily lives or invest money in crypto, the higher it will be a risk for America’s traditional economy.
