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Bragg and Sen. Myrie Introduce CRYPTO Act to Criminalize Unlicensed Crypto Businesses in New York

The proposal adds jail penalties for operating without a virtual‑currency license to curb laundering through unregulated kiosks.

Overview

  • Introduced Thursday, the CRYPTO Act would create a new crime for unlicensed virtual currency business activity in New York.
  • The bill sets graduated penalties from a Class A misdemeanor up to a Class C felony carrying a maximum of 5 to 15 years for handling $1 million or more in a year.
  • New York currently imposes only civil penalties for unlicensed operators, and sponsors say the change would align the state with 18 others and complement federal law.
  • District Attorney Alvin Bragg has elevated crypto enforcement as a second‑term priority and is seeking mandatory licensing and KYC requirements for all crypto businesses.
  • Officials highlight unlicensed crypto ATMs and kiosks as conduits for laundering and scams, while experts warn outcomes will depend on legislative passage and stronger investigative capacity.