Frankly my dear, I do give a DAAML
A bipartisan bill introduced in the US Senate could finally bring the cryptocurrency industry to heel by, among other things, extending existing banking regulations to cover digital currencies and designating cryptocash sellers as money service businesses.
The Digital Asset Anti-Money Laundering (DAAML) Act [PDF] was introduced yesterday by Senators Elizabeth Warren (D-MA) and Roger Marshall (R-KS) with the expressed goal of killing the use of cryptocurrencies as a way to launder money and finance terrorism.
„The crypto industry should follow common-sense rules like banks, brokers, and Western Union, and this legislation would ensure the same standards apply across similar financial transactions,“ Warren said.
While not directly saying the arrest of disgraced former FTX CEO Sam Bankman-Fried was the impetus for the bill, Warren did tell CNN that the bankruptcy of „a major crypto platform“ and its CEO’s prosecution meant digital assets were being increasingly scrutinized across the political spectrum. What better time to take action than when crypto crimes are front and center, she opined.
„Rogue nations, oligarchs, drug lords, and human traffickers are using digital assets to launder billions in stolen funds, evade sanctions, and finance terrorism,“ Warren said.
One doesn’t need to look hard to find support for that claim: In 2020, a Bulgarian man who ran a crypto exchange was convicted of using it to launder money for fellow criminals, and last year a $150m crypto laundering ring in Hong Kong was busted by the Chinese government.
