Us Senator Elizabeth Warren has indicated that a bipartisan cooperative compliance management (AML) bill will soon be re-uploaded to the U.S. Congress. The bill includes "decentralized entity lines" such as decentralized Finance (DEFI) agreements and decentralized Autonomous organizations (DAO).

Warren, an outspoken cryptographic critic, argued at a House of Lords Financial institutions Committee hearing on Feb. 14 that the decentralized physical lines that the cryptographic community wants to operate on the code will not be restricted by AML rules:

"in other words, they want to give Defi a huge loophole in the policy so that he can launder money when drug dealers or terrorists pay them."

As such, Warren indicated that she would reintroduce the 2022 Digital currency Compliance Act, which he first proposed on December 15, 2022. They were read twice before they were submitted to the Federation of Financial institutions of the House of Lords and could not be applied further.

Under the original law, the nearly seven-page bill would explicitly prohibit financial companies from using digital currency switch valves such as Tornado Cash, which focus on ambiguous blockchain data.

This will also cause unmanaged wallets, excavators, and validators to be required to write and implement AML countermeasures.

The member stressed that the current AML laws and regulations "do not include the vast majority of the password industry" and claimed that the password exchange ShapeShift took advantage of the lack of regulatory opportunities when it reorganized itself into a Defi service platform in July 2021, adding:

"they say that we are carrying out this change, introducing the phrase, 'enable ourselves to address regulated theme activities'." Money laundering here.

Warren declared that "first-class financial suspects love encryption algorithms" and argued that encryption algorithms were "the best choice for international drug dealers, North Korean cyber hackers and blackmail virus cyber attacks", adding:

"Last year, illegal activities in the password market earned $20 billion, but that's only part of what we know."

These figures are applicable to the contents of the blockchain technical analysis company Chainanalysis's report on January 12, which found that all digital currencies obtained from illegal detailed addresses totaled $20.1 billion in 2022.

Speaking at a meeting of the counter-Terrorism Committee in October 2022, a United Nations official made it clear that cash was still the best way to support terrorists, although they gradually switched to data encryption more frequently.

North Korean cyber hackers are facing frictional resistance to trying to use passwords on Binance and Huobi exchanges that they believe are linked to Lazarus Group.