Manhattan District Attorney Alvin Bragg and New York State Sen. Zellnor Myrie, D-Brooklyn on Thursday announced new legislation that, if passed, would criminalize the operation of virtual currency business in the state without a license.

The “Cryptocurrency Regulation Yields Protections, Trust, and Oversight” Act, or CRYPTO Act, would amend New York State Financial Services Law to include a new section, § 408-b.

Under that change, a business operating without a license could face criminal prosecution for “Unlicensed Virtual Currency Business Activity.” Possible charges range from an A misdemeanor to a C felony, depending on the amount of currency transmitted. Conviction on a C felony carries up to a 5-to-15 year prison sentence.

Currently, entities that exchange, transmit or trade crypto in the state only face civil penalties if they fail to register for a license.

“The shadow financial system created by the explosion of cryptocurrency has created an ideal vehicle for money laundering and other crimes in New York State,” the DA said in announcing the bill.

“Crypto is the go-to means for bad actors to move and hide the proceeds of crime," he added. "It is long past time for businesses that operate without a virtual currency license and flout due diligence requirements to face criminal penalties."

In public comments on Wednesday, Bragg told an audience at New York Law School that the crypto space needs accountability "on steroids."

While traditional banking systems are regulated by safeguards like "Know Your Customer Forms," crypto has no similar guardrails.