New York District Attorney proposes to make it illegal for businesses to handle cryptocurrency without a license.
New legislation proposed in New York aims to regulate cryptocurrency transactions more stringently, making it a criminal offense for businesses to engage in such activities without obtaining a proper license. The bill, known as the CRYPTO Act, was jointly announced by Manhattan District Attorney Alvin Bragg and State Senator Zellnor Myrie. This initiative seeks to enhance oversight of cryptocurrency dealings amid rising concerns over their use in illicit activities.
Under the proposed legislation, individuals and businesses that engage in cryptocurrency transactions surpassing million without a virtual currency license would face serious legal consequences, including felony charges that could result in a prison sentence of up to 15 years. This move signifies a significant shift in the regulatory landscape, as current state laws impose only civil penalties on unlicensed crypto exchanges, while federal authorities may pursue criminal charges.
Bragg has expressed a strong commitment to tackling the complexities of cryptocurrency-related crimes, categorizing them as a paramount concern during his upcoming term. At a recent public safety forum hosted by New York Law School, he emphasized the challenges posed by cryptocurrency, which he described as a tool often utilized by criminals to launder money and evade law enforcement scrutiny. He stated that understanding and regulating this financial system is essential for ensuring accountability within the broader economic framework.
Senator Myrie has endorsed the bill, highlighting its alignment with legislative measures already adopted by 18 other states that have declared unlicensed cryptocurrency transactions illegal. He argued that such regulation is crucial for safeguarding consumers and the general public against potential fraud, scams, and other financial crimes, reinforcing New York’s role as a leading financial center.
As the cryptocurrency landscape continues to evolve, the proposed CRYPTO Act represents a proactive approach by New York authorities to adapt to the rapid changes in financial technologies and the necessity for regulatory mechanisms to address potential abuses. By establishing clear legal requirements for cryptocurrency transactions, state officials hope to create a safer, more transparent financial environment for all stakeholders involved.
As discussions around cryptocurrency regulation gain momentum, the implications of this legislation could resonate beyond New York, potentially influencing similar initiatives in other jurisdictions as they grapple with the challenges posed by this emerging sector. Media News Source
