Digital asset anti-money laundering act threatens cryptocurrency industry

The Digital Asset Anti-Money Laundering Act of 2023, sponsored by Senators Elizabeth Warren and Roger Marshall, aims to impose bank-like regulations on decentralized internet network participants, such as digital asset wallet providers, unhosted wallets, miners, and nodes. The bill requires entities and individuals to know the customer information of every person involved in a transaction, which is impractical and virtually unenforceable for decentralized activities like running software or mining. This bill, presented in the wake of FTX collapse and geopolitical events like the Russian invasion of Ukraine, takes an extreme approach that seriously infringes on individual privacy and creates obstacles for innovation in the cryptocurrency industry.