New York to strengthen crypto crime and unlicensed platforms

Lawmakers are considering measures to introduce licensing and strengthen market oversight.

Manhattan district attorney calls for tighter regulation of cryptocurrencies

15.01.2026 - 10:20

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2 min

Key points:

New York City officials believe that weak regulation of the crypto market facilitates money laundering and fraud.
The Manhattan District Attorney proposes mandatory licensing and criminal penalties for illegal operations.

Manhattan District Attorney Alvin Bragg called on New York City officials to tighten laws against crypto crime. He argues that weak regulation allows criminals to conduct billions of dollars of transactions through unlicensed platforms with impunity. Speaking at New York Law School, Bragg claimed that a "criminal crypto economy" worth approximately $51 billion exists in the shadows.

These funds, he claimed, are used to launder money from arms trafficking, drug trafficking, fraud, and even terrorist financing. The prosecutor insists that unlicensed crypto transactions should be criminalized.

Unlicensed Crypto ATMs Under Government Scrutiny

Bragg also focused on crypto ATMs and kiosks operating without licenses. He noted that such devices often charge a commission of up to 20% and show little regard for the origin of the cash. This makes them a convenient tool for money laundering.

Criminals, the prosecutor noted, deliberately choose such schemes to avoid dealing with banks and other regulated entities. However, current laws often force investigators to rely on the mistakes of the criminals themselves.

US Launches Investigation into Bitcoin ATM Operators

Missouri authorities are demanding that operators disclose information about fees and customer protection.

The prosecutor has proposed introducing mandatory licensing and KYC regulations for all crypto companies in New York. He proposes criminalizing violations. He argues that any company involved in the transfer or trading of digital assets should be subject to basic oversight.

If the initiative passes, New York will become the 19th US state to criminalize unlicensed crypto operations. Supporters believe this will strengthen user protections and simplify investigations into fraud and money laundering.

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