New York’s CRYPTO Act Threatens Unlicensed Operators With 15-Year Prison Terms
Manhattan DA Alvin Bragg and State Senator Zellnor Myrie unveiled legislation that WOULD criminalize unlicensed cryptocurrency operations. The proposed CRYPTO Act—short for 'Cryptocurrency Regulation Yields Protections, Trust, and Oversight'—aligns New York’s penalties with federal standards, where violations currently carry up to five-year sentences.
Current civil penalties for unregistered crypto businesses would escalate to felony charges under the bill. The law specifically targets exchanges, trading platforms, and transport services operating without a virtual currency license—a requirement already on the books but lightly enforced.
‘This isn’t innovation—it’s endangerment,’ Bragg stated, framing the MOVE as consumer protection against 'crypto cowboys.' The bill’s language mirrors financial regulations governing traditional money transmitters, demanding identical compliance burdens for digital asset firms.
