US Government Removes Cryptocurrency AML Provisions from NDAA

blockchain.news:

The United States government recently made a significant move by removing two key provisions from the National Defense Authorization Act (NDAA) that aimed to address Anti-Money Laundering (AML) concerns in the realm of cryptocurrency. This action marks a notable shift in the government's approach to regulating digital assets.

Legislative Background and Provisions

The NDAA, primarily a legislation for authorizing the country's defense department expenditures, often includes various amendments. In this context, two amendments specifically targeted the oversight of cryptocurrency transactions to mitigate money laundering risks.

Risk-Focused Examination System: The first provision involved the U.S. Secretary of the Treasury collaborating with banking and governmental regulators to establish a comprehensive review system for financial institutions dealing in cryptocurrencies. This system was intended to focus on risk assessment and compliance with existing AML frameworks.

Combatting Anonymous Transactions: The second provision dealt with anonymous crypto asset transactions, particularly those involving crypto mixers and tumblers. It mandated a detailed report on the transaction volumes associated with sanctioned entities and the regulatory measures taken by other jurisdictions in this context.

Implications of Removal

It is clear that the United States government has shifted its position on strong crypto laws, particularly those linked to anti-money laundering, as seen by the elimination of these sections. This decision was made after recent discussions on concerns over the facilitation of terrorist financing and money laundering carried out by cryptocurrency. Over the course of a hearing that took place on November