Elizabeth Warren to present updated bill against money laundering through cryptocurrencies

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

Elizabeth Warren said:that she is working with Senator Roger Marshall of Kansas on legislation 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 would expand reporting requirements,which will also apply to US users making transactions with crypto assets worth more than $10,000 and using offshore accounts. The Ministry of Finance must verify that financial and cryptocurrency companies are registered and comply with AML rules.

According to the senator, cryptocurrencies are consideredthe preferred payment method among drug traffickers, who made more than a billion dollars last year using cryptocurrencies. Warren also recalled North Korean hackers who, according to the United Nations (UN), stole more than $1 billion in crypto assets to finance the nuclear program.

“The current anti-money laundering rulesmoney is not properly respected by cryptocurrency companies. Our bill will crack down on 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 introduceda bill that allows the US government to impose sanctions even on foreign crypto companies working with users on the US Treasury blacklist. However, the cryptocurrency community criticized this bill, calling it undemocratic.