Blockchain
Senator Warren Stresses On AML Compliance For Crypto Validators
Senator Elizabeth Warren has called for tougher regulators for crypto validators and stablecoin users to curb global illicit trade. At the United States Senate Banking Committee Hearing, Warren noted that crypto firms must be subject to similar Anti-Money Laundering (AML) regulations as their traditional finance counterparts.
Speaking at the hearing was Treasury Deputy Secretary Wally Adeyemo on Countering Illicit Finance, Sanctions Evasion and Terrorism. In response, Senator Warren stated that crypto validators were not subject to the same legal frame as banks.
This comes amid previous criticism leveled against the sector as a tool to facilitate illegal finance and evade sanctions. Warren asked about the possibility of Iran being a validator of crypto transactions from the United States. Adeyemo confirmed the possibility of opening up more criticism with Warren calling in more checks to crypto validators.
Probing further, she hinted at the growth of the crypto market to the amount Iran receives highlighting the need for all stakeholders and stablecoin issuers in the regulatory framework.
“So Iran, which is subject to all kinds of sanctions, is making millions of dollars validating transactions all because we don’t have the tools to stop them?”
Community Backs Crypto Validators
The digital asset community criticized the unfair comparison of crypto validators to the cause of illicit finance. Some users on X (formerly Twitter) wrote that Iran has gained more from the traditional finance system than through crypto validators.
“Iran could also make money operating an ISP that routes emails instead of a miner that helps send transactions. It wouldn’t follow that the internet needs KYC obligations though. It can’t be said enough: Miners and validators are not counterparties,” others argued.
Elizabeth Warren Maintains Anti-Crypto Stance
Senator Warren has long criticized the crypto industry for loopholes hitting on their reluctance to follow the same rules as traditional finance firms. The Blockchain Association also argued against some of Warren’s views on the application of the proposed Anti-Money Laundering Bill.
Meanwhile, Senator Tim Scott argued that crypto players are receiving unfair treatment stating that it isn’t the fault of crypto validators or other stakeholders the United States gave Iran $6 billion.
Also Read: Expert Links Ripple Stablecoin Ambitions to Tether’s Success
David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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