by Mish Shedlock, Mish Talk:
In the name of money laundering, Senator Elizabeth Warren goes after crypto. She has a Republican co-sponsor.
Please note that a bipartisan bill to crack down on crypto money laundering is in the works.
The Legislation Would
TRUTH LIVES on at https://sgtreport.tv/
- Direct the Financial Crimes Enforcement Network (FinCEN) within the Treasury Department to designate digital asset wallet providers, miners, validators and others as money service businesses.
- Extend responsibilities in the Bank Secrecy Act to the crypto industry, including Know-Your-Customer (KYC) requirements.
- Direct FinCEN to finalize and implement a rule proposed in 2020 that would require banks and money service businesses to verify customer and counterparty identifies, keep records and file reports linked to unhosted wallets or ones in jurisdictions that are not compliant with the Bank Secrecy Act.
- Ban banks and other financial institutions from using or transacting with anonymity-enhancing technologies such as digital asset mixers and from handling or transacting with digital assets that have used those technologies.
- Extending Bank Secrecy Rules on reporting of foreign bank accounts to include digital assets by requiring Americans engaged in digital asset transaction greater than $10,000 through offshore accounts to file a report with the Internal Revenue Service.
- Crack down on digital asset ATMs by making sure operators and administrators submit and update the physical addresses of their kiosks
One Hell of a Set of Requirements
I suspect any US citizen with $10,000 or more in combined assets in non-US administered wallets, would have to report to the IRS. People holding offshore gold have to do that now.
Certainly any transaction over $10,000 would be flagged.
Warren even goes after cold wallets, “unhosted wallets or ones in jurisdictions that are not compliant with the Bank Secrecy Act”
I’m not sure how that is supposed to work but there is an obvious implication. A move of crypto in any size from a cold wallet to a hot wallet to buy something would get reported or the transaction would be deemed money laundering.
