The Bank Policy Institute, a US banking advocacy group, is backing Senator Elizabeth Warren’s legislation called the ‘Digital Asset Anti-Money Laundering Act of 2023’, as reported by Bloomberg.
The bill aims to combat financial crime by increasing transparency in digital asset transactions and preventing money laundering and terrorism financing.
BPI’s statement on AML: “The existing anti-money laundering and Bank Secrecy Act framework must account for digital assets, and we look forward to engaging in this process to defend our nation’s financial system against illicit finance in all its forms.”
If passed, the bill will require digital asset companies, including wallet providers and miners, to keep records of their customers’ identities. The Bank Policy Institute believes that including digital assets in the anti-money laundering framework is crucial to protect the nation’s financial system from illicit finance.
In addition to the Bank Policy Institute, the bill has garnered support from the Massachusetts Bankers Association, AARP, the National Consumer Law Center, and the National Consumers League. However, there is opposition from some in the crypto industry, such as Tyler Winklevoss, co-founder of the Gemini exchange.
The backing for Senator Warren’s ‘Digital Asset Anti-Money Laundering Act of 2023’ indicates a growing recognition of the necessity to regulate the crypto industry to combat financial crimes.
