Cryptocurrency cases may involve both New York licensing rules and federal criminal laws. If you face a money laundering charge, that overlap can make the case harder to follow. New York lawmakers proposed the Cryptocurrency Regulation Yields Protections, Trust and Oversight Act, or CRYPTO Act, to crack down on unlicensed virtual currency businesses.
The bill would not create a new penalty for a past money laundering conviction. It could, however, support a separate charge if the same conduct also involved an unlicensed crypto business.
How the bill targets unlicensed crypto businesses
The CRYPTO Act would make it a crime to operate a virtual currency business in New York without the license required by state law. A basic violation would count as a class A misdemeanor. Larger transaction amounts could raise the offense to a class E, D or C felony.
The proposal would also create a class E felony for an unlicensed operator who handles virtual currency while knowing that the funds came from crime. Lawmakers designed this part of the bill to address businesses that move stolen money or hide criminal proceeds. Those cases may involve scams, terror financing or drug activity.
What a conviction could mean
The proposed CRYPTO Act would not replace existing federal money laundering laws or change their penalties. However, the same conduct could lead to both a state charge under the proposed bill and a separate federal money laundering charge.
A federal conviction could bring up to 20 years in prison. The court could also impose a fine of up to $500,000 or twice the value of the property involved, whichever amount is greater. You may also have to give up property tied to the crime.
Your sentence could depend on the amount of money involved, where it came from and your role in the scheme. Related convictions for wire fraud, drug conspiracy or tax evasion might lead to more prison time, fines or restitution.
Know where the law stands
If your case involves cryptocurrency, consider identifying which state and federal laws apply. Understanding the charges and preparing for each stage could help you make informed choices and protect your interests.