New York Proposes Criminal Penalties for Unlicensed Crypto Operations
- The CRYPTO Act proposes prison sentences of five to fifteen years for unlicensed crypto activities involving transactions over $1 million.
- Currently, violations are treated as civil infractions, with civil fines being the only penalty.
- At least eighteen other states have already criminalized unlicensed digital asset operations.
- District Attorney Alvin Bragg cites a growing “shadow financial system” that facilitates illicit fund movements.
- The proposal comes amid ongoing criticism of New York’s BitLicense regime, seen as a barrier to innovation.
This legislative initiative aims to tighten regulations on cryptocurrency operations in New York by aligning more closely with federal standards and addressing concerns about unregulated financial activities. The push for stricter penalties reflects a growing urgency among lawmakers to combat illicit activities linked to the crypto market.
If enacted, the CRYPTO Act could significantly change how unlicensed cryptocurrency businesses are regulated in New York, potentially leading to prison sentences for those processing large transactions without proper licensing. (Source)
