The Digital Asset Anti-Money Laundering Act is an opportunistic, unconstitutional assault on cryptocurrency self custody, developers, and node operators
The bipartisan Digital Asset Anti-Money Laundering Act, introduced today by Sens. Warren and Marshall, is the most direct attack on the personal freedom and privacy of cryptocurrency users and developers we’ve yet seen. It would force anyone who helps maintain public blockchain infrastructure, either through software development or validating transactions on the network, to register as a Financial Institution (FI). As FIs, they would be obligated to:
Warren Expands Coalition of Banking Committee Support for Bill Cracking Down on Crypto’s Use in Money Laundering, Drug Trafficking, Sanctions Evasion
Washington, D.C. – United States Senators Elizabeth Warren (D-Mass.) announced an expanded coalition of Senate support for the bipartisan Digital Asset Anti-Money Laundering Act, which would mitigate the illicit finance risks that crypto poses by closing loopholes and bringing the digital asset ecosystem into greater compliance with the anti-money laundering and countering the financing of terrorism (AMF/CFT) frameworks that govern much of the financial system.
Malaysian Police: Cryptocurrency Investigation Team Handles Cases Amounting to RM1 Billion
Datuk Sri Nalan, director of the Commercial Crime Investigation Department of Bukit Aman, Malaysia, pointed out that the bureau established a cryptocurrency investigation team as early as 2018. The team was officially launched on May 31, 2022, becoming the first cryptocurrency investigation team in Southeast Asia. The team has also assisted multiple domestic and foreign institutions, analyzing a total of 532 electronic wallets, with a total amount of cases involving up to 1 billion ringgit.
Former President of Taiwan’s Executive Yuan: Relying solely on the self-discipline of encryption practitioners will eventually be a disaster
Former head of Taiwan's Executive Yuan and chairman of the New Generation Financial Foundation, Chen Chung, wrote that the current situation of the Financial Supervisory Commission (FSC) is awkward as it lacks a legal basis for regulatory authority. Despite having had two different leaders in the Executive Yuan, there has been no solution to this problem. While it is possible to rely on self-regulation by industry practitioners, without external regulation, it will ultimately lead to disaster.
IRS steps up efforts to crack down on cryptocurrency-related tax evasion
According to a report from the criminal investigation department of the US Internal Revenue Service (IRS), tax evasion has become a significant focus of cryptocurrency investigations, with more than half of all investigations conducted in the last fiscal year related to tax issues. This news comes as the IRS actively seeks input from stakeholders on its upcoming cryptocurrency-focused framework. The report notes that three years ago, over 90% of active cryptocurrency investigations were focused on money laundering, but in the last fiscal year from October 1, 2022 to September 30, 2023, tax-related issues accounted for about half of digital asset investigations. Therefore, the IRS is increasing efforts to combat cryptocurrency tax fraud. The agency's criminal investigation department reported in its annual report that the number of investigations related to digital asset reporting has increased, with at least 2,676 cases initiated in the 2023 fiscal year, uncovering over $37 billion in transactions related to financial and tax crimes.
47% of Nigerians engaged in cryptocurrency-related activities
According to a report by Coin Journal, about 47% of Nigerians actively participate in cryptocurrency, which is widely seen as an alternative to traditional financial systems. The analysis also shows that cryptocurrency ownership in the country has grown by 15% between 2020 and 2023. Despite measures taken by the Central Bank of Nigeria (CBN) to restrict the use of such digital assets, the number of Nigerians who own them continues to grow.
Four US Senators Propose Bipartisan Bill to Enforce Sanctions on Digital Assets Used by Terrorist Organizations
A new bipartisan bill has been proposed by four US Senators to enforce sanctions against foreign parties that transact with terrorist organizations. The bill aims to crack down on the funding of terrorist groups such as Hamas by expanding sanctions to cover all US-designated Foreign Terrorist Organizations (FTOs). Actors identified as FTOs will either have restricted access to their US bank accounts or be unable to transact crypto assets to people in the US. The bill has been introduced in response to the recent attacks on Israel perpetrated by Hamas, which have made it more urgent and necessary for the US to counter the role that cryptocurrency plays in the financing of terrorism.
The new bipartisan bill in the United States proposes to expand the Treasury Department’s sanctions powers and grant it more resources to address encryption issues
US Senators Mark Warne, Mike Rounds, and Mitt Romney introduced a bill today called the "Terrorist Financing Prevention Act," which will expand the Treasury Department's sanctioning power to cover more terrorist organizations, including Hamas, and provide them with more resources to address encryption issues.
Bank of England warns of financial stability risks from growing asset tokenization market
The Bank of England has warned that the growth of asset tokenization could lead to greater financial stability risks from unbacked crypto and stablecoins. The central bank noted that banks are becoming more positive about using crypto technologies for the tokenization of money and real-world assets. Tokenization is a growing part of the crypto ecosystem and is predicted to become a $10 trillion market by 2030. However, the increasing size of the market could pose risks for the wider financial environment, and the BOE has called for more global cooperation to reduce these risks.
