Digital Asset Anti-Money Laundering Act of 2023

S 2669 requires digital asset service providers - including unhosted wallet providers, validators, miners, and digital asset kiosks (crypto ATMs) - to register with the Financial Crimes Enforcement Network (FinCEN) and verify customer identities. It mandates that entities handling anonymity-enhancing tools (like mixers that obscure transactions) implement anti-money laundering controls and report holdings over $10,000 abroad. The bill sets deadlines for implementing these rules: registration within 180 days, identity verification for kiosks within 18 months, and reporting requirements within 18 months of enactment. These provisions directly affect crypto businesses, wallet services, and kiosks operating in the U.S., aiming to reduce illicit finance risks in digital asset transactions.