Sen. Elizabeth Warren (D-Mass.) is leading a groundbreaking regulatory effort against the misuse of cryptocurrency by entities looking to fund illicit activities, such as terrorism and evade sanctions.
What Happened: Warren recently introduced a bipartisan bill to help tackle crypto money laundering and other illegal activities.
The new legislation will require greater transparency from virtual currency platforms, as well as enhance existing regulations and policies to better protect consumers from money laundering and other frauds.
“Rogue nations, oligarchs and drug lords are using crypto to launder billions, evade sanctions and finance terrorism. My bipartisan bill puts common-sense rules in place to help close crypto money laundering loopholes and protect our national security,” Warren said in a tweet.
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The Massachusetts Senator has proposed a new rule requiring American citizens who do crypto transactions of more than $10,000 outside the U.S. to report them to the relevant authorities.
The bill further requires FinCEN to classify unhosted crypto wallets, crypto miners, and node validators as money service businesses subject to the existing regulatory framework.
This will help ensure that these entities follow appropriate regulations and safeguards to protect users, while enabling the secure and efficient use of cryptocurrency.
Price Action: Bitcoin BTC/USD traded nearly flat and Ethereum ETH/USD was in the red on Wednesday evening after the U.S. Federal Reserve signaled more rate hikes for 2023.
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