Coinbase and Galaxy Digital Blast U.S. Senators’ Controversial ‘Digital Asset Anti-Money Laundering Act
The Stirring Controversy in Crypto Regulation
U.S. Senators Elizabeth Warren and Roger Marshall have recently introduced the ‘The Digital Asset Anti-Money Laundering Act of 2023’, sparking intense backlash from the cryptocurrency industry and community.
Further reading：South Korea’s Upbit Exchange Tightens Deposit Limits and KYC Requirements — A Drastic Change for Crypto Traders
Key Provisions of the Proposed Bill
The proposed bill, aimed at tightening cryptocurrency regulations, includes contentious measures such as:
- Expanding KYC (Know Your Customer) identity verification requirements under the Bank Secrecy Act to digital asset participants like wallet providers, miners, and validators.
- Regular reporting and record-keeping requirements for banks and crypto service providers involving transactions with ‘non-custodial digital asset wallets.’
- Mandatory reporting to the IRS by Americans engaging in digital asset transactions over $10,000 through offshore accounts.
Further reading：EU Proposes Strict KYC for Crypto Transactions Under €1,000 to Combat Small-Scale Terror Funding
Bipartisan Support and Criticism from Industry Leaders
Despite being backed by five senators, including Warren, the bill has been heavily criticized by major players in the digital asset industry. Coinbase CEO Brian Armstrong sarcastically commented on the bill’s drafting with the help of the ‘American Bankers Association’.
Mike Novogratz, founder of Galaxy Digital, also publicly slammed Warren’s stern stance on crypto regulation.
Community’s Reaction: Skepticism Over Bill’s Passage
The crypto community seems unconcerned about the bill’s passage, given Warren’s legislative track record with none of her proposed bills becoming law in seven years. Furthermore, Warren’s recent request for detailed information from key digital asset organizations like Coinbase, Blockchain Association, and Coin Center has added to the discussion.
The Ongoing Debate in Crypto Regulation
The ‘The Digital Asset Anti-Money Laundering Act of 2023’ continues to fuel the debate over cryptocurrency regulation in the U.S., highlighting the industry’s apprehension towards stringent legislative measures.
Further reading：Spain Mandates Crypto Asset Disclosure for Citizens and Businesses Starting 2024
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Keywords: The Digital Asset Anti-Money Laundering Act of 2023, Elizabeth Warren, Roger Marshall, Cryptocurrency Regulation, KYC, Coinbase, Galaxy Digital, Brian Armstrong, Mike Novogratz, U.S. Senate, Legislative Measures, Crypto Industry Backlash
