The new US senator bill intends to tighten the anti-money laundering rules of digital assets, including expanding the scope of application of KYC rules, etc.

U.S. Senators Elizabeth Warren and Elizabeth Warren have jointly released a bill aimed at tightening U.S. anti-money laundering rules for digital assets. The bill would expand KYC rules to wallet providers, miners, validators, and other network participants, and would also ban financial institutions from using or interacting with transaction mixing apps, while also wanting the Treasury to establish a system similar to banking regulators’ censorship. Examination conducted by banks and requires banks and money services businesses to report and keep records of counterparties and transactions involving non-custodial digital asset wallets, or wallets hosted in jurisdictions that do not comply with U.S. anti-money laundering rules. The bill also includes information filing requirements for offshore digital asset transactions of $10,000 or more, and requires U.S. cryptocurrency ATMs to verify customer identities and regularly provide federal authorities with the location and number of machines they own. The bill is unlikely to pass before the current session of Congress ends in early January, but could help further apply anti-money laundering laws to digital assets and push regulators to finalize rules.