Digital Asset Anti-Money Laundering Act: What the Bill Means for Cryptocurrencies

The bill introduced by the Senate Banking, Housing and Urban Affairs Committee and the House Financial Services Committee would require businesses to identify customers with accounts worth more than $10,000. They will also be required to keep records of transactions over $1,000.

This bill is designed to combat money laundering and terrorist financing, which are serious problems in cryptocurrency industry. The Treasury Department estimates that about half of all cybercrime involves cryptocurrencies like Bitcoin, according to a recent CipherTrace report. In addition, there have been a number of reported cases where cryptocurrency trading platforms have been used to finance terrorist groups or other criminal organizations.

Rules The new technology has the potential to affect many businesses that use cryptocurrencies as a payment method. such as a stock exchange or trade processor. The scope of these requirements is unclear, but it is likely that some form of KYC (know your customer) will be required for all users, whether using fiat or crypto. for payment.

Some major exchanges have implemented some form of KYC these days, but most don't require it for all users (some only require KYC for traders. high value translation). However, many smaller exchanges currently do not perform any kind of verification.