New York’s CRYPTO Act Targets Unlicensed Crypto Operations
- The CRYPTO Act introduces criminal penalties for unlicensed virtual currency operations in New York.
- Penalties range from a Class A misdemeanor to a Class C felony, with sentences up to 15 years.
- New York currently imposes only civil penalties, unlike federal law and laws in eighteen other states.
- The bill targets businesses handling $1 million or more in cryptocurrency within one year without a license.
- Manhattan DA Alvin Bragg emphasizes the need for criminal penalties to combat a growing shadow financial system.
The CRYPTO Act aims to close enforcement gaps by introducing criminal penalties for unlicensed crypto operations, which are currently subject only to civil fines in New York. This measure aligns with federal and other states’ laws that already impose harsher consequences on such activities.
By elevating violations from civil fines to potential felony charges, the CRYPTO Act seeks to deter illegal crypto activities and address the underground economy fueled by cryptocurrency use. (Source)
