The US government is removing two crypto AML laws from the National Defense Bill
The United States government has removed two provisions from the National Defense Authorization Act (NDAA) to address anti-money laundering (AML) concerns related to cryptocurrencies.
The NDAA is a law that governs how the Department of Defense uses federal funds. Two of the broadest provisions removed from the NDAA were a thorough vetting system to combat illegal activities and reporting of crypto activities.
The first provision directs the US Treasury Secretary to coordinate with bank and government regulators to develop a risk-based inspection and evaluation system for financial institutions in crypto.
The second provision includes combating anonymous crypto asset transactions, particularly crypto mixers and tumblers.
This includes preparing a report detailing the volume of crypto asset transactions linked to sanctioned entities. In addition, the report covers regulatory approaches adopted in other jurisdictions.
Following this, it provides guidelines for the US government's implementation of crypto regulations:
“Legal or regulatory recommendations relating to the technologies and services described in paragraphs (1) and (3).”
In the year On July 28, the US Senate approved the NDAA worth $886 billion, Cointelegraph reported.
Crypto-related reforms include the Digital Asset Anti-Counterfeiting Act introduced in 2022 and the Responsible Financial Innovation Act, which seeks to set up precautions to avoid another FTX-type incident in the industry.
It was proposed by a group of senators including Cynthia Lammis, Elizabeth Warren, Kirsten Gillibrand and Roger Marshall.
Related: FinCEN Proposes to Designate Crypto Mixers as Money Laundering Centers
More recently, he has been advising the US government on issues related to money laundering and terrorist financing.
The US House of Representatives Committee on Financial Services He held a meeting on November 15 to discuss illegal activities in the crypto ecosystem.
During the meeting, an assessment was made of how active crypto exchanges and decentralized finance providers are in preventing money laundering and terrorist financing.
Magazine: Legislators' fear and skepticism fuel proposed crypto regulations in the US.
