News: Myrie, District Attorney Bragg Announce "Crypto Act" To Combat Unlicensed Virtual Currency Operations

NEW YORK— Today Senator Zellnor Myrie (D-Central Brooklyn) joined Manhattan District Attorney Alvin L. Bragg, Jr. to announce a new proposal to make operating a virtual currency business without a license a crime in New York State. The "Cryptocurrency Regulation Yields Protections, Trust, and Oversight (CRYPTO) Act," introduced this week by Senator Myrie, would criminalize unlicensed virtual currency businesses, which are frequently linked to money laundering and other criminal activity.

“As the use of crypto has grown, so has illicit activity. New York is the financial capital of the world and we need to take our responsibilities to the marketplace seriously," said Senator Myrie, chair of the Senate Codes Committee. "My bill would bring New York in line with the 18 other states that have explicitly made unlicensed crypto transactions a crime and help protect consumers and the general public from potential frauds, scams and other financial crimes."

“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," said District Attorney Bragg. "Crypto is the go-to means for bad actors to move and hide the proceeds of crime. It is long past time for businesses that operate without a virtual currency license and flout due diligence requirements to face criminal penalties. I thank Senator Myrie for his leadership on this issue and urge the legislature to take action this session.”

Under current law, virtual currency businesses in New York State must register for a license, but only face civil penalties for failing to do so. The CRYPTO Act would subject these businesses to criminal prosecution with offenders facing up to a Class C felony, which carries a maximum of five to 15 years in prison, depending on the severity of the offense.