• The Digital Asset Anti-Money Laundering Act of 2022 has been proposed by the U.S. Senate and contains KYC laws, money-transmitter licensing requirements and more.
• The European Central Bank recently declared Bitcoin to be on an “artificially induced last gasp before the road to irrelevance” and is considering a Bitcoin and crypto ban.
• Level39’s thread depicts testimony from the recent Senate Banking Committee hearing, showing the beginning of the fight against Bitcoin and cryptocurrency adoption.
The proposed Digital Asset Anti-Money Laundering Act of 2022 is an ominous sign of what is to come for Bitcoin and cryptocurrency adoption. The U.S. Senate introduced the bill, which contains many threatening aspects, such as KYC laws for self-custody wallets and money-transmitter licensing requirements. This comes on the heels of the European Central Bank’s (ECB) recent revelation that Bitcoin is on an “artificially induced last gasp before the road to irrelevance” and is considering a Bitcoin and crypto ban in order to mitigate environmental damage.
The implications of this are far-reaching, as regulators around the world are beginning to take notice of the rise of Bitcoin. The ECB’s declaration and the proposed legislation in the United States are evidence of the fight that is being waged against the adoption of cryptocurrency. It is clear that regulators are becoming increasingly aware of its potential and are looking for ways to limit its use.
Level39’s thread highlighting the testimony from the recent U.S. Senate Banking Committee hearing is a testament to this. The testimony given by the members of the committee highlighted their concerns regarding the potential use of Bitcoin and cryptocurrency for money laundering, terrorism financing, and other nefarious activities.
The fight against Bitcoin and cryptocurrency has only just begun, and it is likely to get worse in 2023. Governments are beginning to understand the potential of Bitcoin and its ability to tip the scales of power and are attempting to find ways to limit its use. While a ban and much of the regulations would be comically impossible to actually enforce, they would serve as a significant speed bump to widespread adoption.
It is important to stay vigilant and keep an ear to the ground (and Bitcoin Twitter) to stay abreast of situations that could be influenced by a sea of calls to your governmentally-elected representatives. This is the only way to ensure that Bitcoin and cryptocurrency can continue to be adopted by more and more people. If we are able to keep up the fight and ensure that the right regulations are passed, then we can ensure that Bitcoin and cryptocurrency can reach its full potential.