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Manhattan District Attorney Alvin L. Bragg, Jr. and New York Democratic Senator Zellnor Myrie introduced the CRYPTO bill, which would criminalize operating a cryptocurrency business without a license.
The bill provides for penalties depending on the volume of cryptocurrencies involved and the duration of the illegal business. If the total value of the cryptocurrencies with which the illegal service operated for a year or less is more than $1 million, the organizer faces a penalty of imprisonment for a term of five to 15 years.
Currently, organizations wishing to legally exchange and trade cryptocurrencies in New York must obtain a BitLicense from the New York State Department of Financial Services (NYDFS). For failure to comply with the requirement, violators face administrative punishment, while federal laws provide for five years in prison for such violations. The district attorney said that 18 American states have already criminalized illegal cryptocurrency businesses, and, in his opinion, New York State should be one of them.
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“The shadow financial system created by the rise of cryptocurrencies has become an ideal environment for money laundering and crime in New York State. Criminals use cryptocurrencies to move and hide illicit gains. It’s long past time for firms that deal with digital assets without a license to face criminal penalties,” the Manhattan attorney said.
Senator Zellnor Myri believes his bill would force cryptocurrency businesses to be subject to the same disclosure requirements that apply to traditional money transfer operators. Making unlicensed crypto transactions a crime would help protect people from being scammed, Mairi insists.
In December, US senators introduced the SAFE Crypto bill on measures to combat cryptocurrency fraudsters, proposing to give law enforcement agencies expanded powers to track suspicious transactions.
