Key Proposals
- Criminal Penalties: Bragg supports legislation, backed by State Senator Zellnor Myrie, that would impose criminal penalties on operators transferring crypto without a license.
- Mandatory KYC: The proposal would require all crypto businesses in New York to implement strict “Know Your Customer” (KYC) protocols, mirroring traditional banking standards.
- Closing Loopholes: The DA’s office noted that current regulations often rely on civil penalties or federal intervention, leaving gaps that allow bad actors to operate with relative impunity.
Manhattan District Attorney Alvin Bragg is urging New York state legislators to criminalize unlicensed cryptocurrency businesses, citing a need to dismantle the financial infrastructure supporting organized crime and money laundering.
Speaking at New York Law School on Wednesday, Bragg identified unlicensed crypto operations as a “top target” for his second term. He specifically highlighted how unregulated exchanges and crypto ATMs are increasingly used to finance the “Iron Pipeline” the route used to smuggle illegal firearms into New York and facilitate drug trafficking.
“I don’t wanna alarm anyone, but… we need systemic accountability on steroids here. In fact, I actually want you to be a little scared,” Bragg told the audience. “It’s the infrastructure that allows the other crime to happen.”
According to data cited by Bragg from blockchain analysis firm Chainalysis, approximately $51 billion in cryptocurrency was transferred to known criminal addresses in 2024. If the proposed legislation passes, New York would become the 19th state to formally criminalize unlicensed crypto money transmission.
Source:https://cryptonews.com/news/new-york-prosecutor-pushes-to-criminalize-unlicensed-crypto-operations/