According to Decrypt, Manhattan District Attorney Alvin Bragg spoke at the New York Law School on Wednesday, urging state legislators to criminalize unauthorized cryptocurrency operations. Bragg warned that regulatory blind spots are fueling a $51 billion criminal economy, enabling criminals to easily launder money from guns, drugs, and fraud. Bragg specifically highlighted the issue of unauthorized cryptocurrency ATMs, which charge a 20% fee to convert "dirty money" into digital assets. He proposed mandatory licensing and know-your-customer (KYC) requirements for all cryptocurrency businesses, accompanied by criminal penalties. If passed, New York would become the 19th U.S. state to criminalize unauthorized cryptocurrency operations. Additionally, Bragg expressed concern about scams such as "pig butchering" schemes, which have caused many elderly people to lose their life savings. Experts say combating cryptocurrency-related crime requires not only a willingness to enforce the law, but also investment in blockchain forensic tools and enhanced technical capabilities for investigators.
Manhattan District Attorney Calls for Stricter Cryptocurrency Regulations to Combat Money Laundering and Fraud
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Summary
Manhattan District Attorney Alvin Bragg called for stronger cryptocurrency exchange regulations to address anti-money laundering (AML) violations and fraud. Speaking at the New York Law School, he cited a $51 billion criminal economy that exploits regulatory gaps. Unregulated cryptocurrency ATMs, which charge 20% fees to launder illicit funds, were specifically highlighted. Bragg proposed mandatory licensing and Know Your Customer (KYC) checks for all cryptocurrency firms, with criminal penalties for noncompliance. If passed, New York would join 18 other states in criminalizing unauthorized cryptocurrency operations. He also warned of scams such as "pig butchering," which target elderly investors. Experts said that better AML tools and training are needed to track cryptocurrency-related crimes.
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