Manhattan District Attorney Alvin Bragg urged New York lawmakers to strengthen crypto enforcement, warning that digital assets are increasingly used for money laundering and organised crime.
Speaking at New York Law School, Bragg said unlicensed crypto businesses are exploiting regulatory gaps to facilitate a criminal economy worth an estimated $51 billion.
He called for mandatory licensing, know-your-customer requirements, and criminal penalties for firms operating without authorisation.
“We need systemic accountability like on steroids here,”
Alvin Bragg said.
Bragg highlighted unlicensed crypto ATMs charging fees of up to 20% to convert illicit cash into digital assets.
“They know you're laundering gun proceeds, and they do it without necessarily asking you,”
Alvin Bragg said.
Prosecutors have pursued cases involving illegal Bitcoin ATM operations and terrorism financing, but Bragg said existing laws limit enforcement.
“We shouldn't need someone to slip up and use a traditional bank,”
Alvin Bragg said.
Bragg said his proposal would make New York the 19th state to criminalise unlicensed crypto operations.
Concerns were raised about elderly victims losing life savings to crypto scams, including pig-butchering schemes.
“If you are operating a crypto business, you should be licensed. It's that simple,”
Alvin Bragg said.
Former Treasury official Ari Redbord said tougher rules must be matched with technical expertise to deliver results.
“When prosecutors say crypto crime will be a priority, the question is whether law enforcement has the tools and expertise to turn that focus into real outcomes,”
Ari Redbord said.
At the time of reporting, Bitcoin price was $95,778.59.