Senators Elizabeth Warren (D-Mass) and Senator Roger Marshall (R-Kan) have launched the “Digital Asset Anti-Money Laundering Act Of 2022,” a invoice which might have sweeping impacts on the privateness of bitcoin customers.

If enacted, the invoice would require custodial and self-custodial pockets suppliers and miners to implement know-your-customer (KYC) methods. It might additionally prohibit monetary establishments from interacting with privateness instruments akin to CoinJoin in an effort to restrict the flexibility of customers to keep up their privateness. Whereas the invoice focuses on such measures so as to curb cash laundering, instruments akin to CoinJoin merely restore the customers’ means to make use of bitcoin in a manner that extra intently resembles bodily money. That’s, the financial institution is aware of when a consumer withdraws money at an ATM, however has restricted information of what any consumer does with it afterwards. This cash-like attribute is barely realized in cryptocurrencies by means of instruments akin to CoinJoins. Along with this, regulating our bodies could be allowed to file stories and surveil customers with out want for a warrant or authorities request.

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