New York Takes Aim at Unlicensed Crypto with Harsher Rules

New York is stepping up its game against unlicensed crypto businesses. The state wants to make operating without a license a criminal offense, not just a fine. This move comes as crypto is increasingly used for illegal activities, and current penalties aren't stopping the underground market. The new bill, called the CRYPTO Act, would make it a crime to run a crypto business without a state license. Right now, the worst that can happen is a fine. But under this new law, penalties could range from a misdemeanor to a felony, with up to 15 years in prison for the biggest offenders. The idea is to crack down on what officials call a "shadow financial system. " Crypto makes it easy for criminals to move and hide money. The hope is that tougher penalties will make people think twice before breaking the rules.New York isn't the only state doing this. Eighteen others already have similar laws. But New York's approach is different from federal law, which also allows for prison time. The state wants to close the gap and make sure crypto businesses play by the rules. Some people worry that this could push businesses away. If the rules are too strict, companies might avoid New York altogether. But others argue that it's necessary to clean up the industry and protect consumers. The BitLicense, introduced in 2015, already requires crypto businesses to meet strict standards. But some say it's too costly and stifles innovation. The new law isn't about banning crypto, but about making sure everyone follows the rules.