The saga began in October 2020, when the CFTC filed a complaint against BitMEX trading platform and its co-founders for operating the business from the US without any license. Two other co-founders of BitMEX, Arthur Hayes and Samuel Reed, have also pleaded guilty to defying AML rules. Hays was already sentenced in May to serve…
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Acting Director of Enforcement Gretchen Lowe Making false or misleading statements to the CFTC in connection with a futures product certification undermines the CFTC’s work to ensure the financial integrity of all transactions subject to the CEA, protect market participants, deter and prevent price manipulation, and promote responsible innovation and fair competition. This enforcement action…
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One pressing issue is shadow banking which is a type of banking system where financial activities are facilitated by unregulated intermediaries. Shadow banking using cryptocurrencies became a significant issue following the collapse of the stablecoin project Terra. It promised a return of up to 20% for USD-pegged stablecoin deposits. She added: I think what I’m…
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The news follows the crypto exchange’s authorization to operate its digital asset trading platform in France, revealed in the beginning of May. The new Digital Asset Service Provider (DASP) registration allows Binance to facilitate digital asset custody, let users buy and sell crypto and help to exchange digital assets for each other. The approval was…
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The crypto exchange offered services to US residents without approval from CFTC to operate as a Designated Contract Market (DCM) or a Swap Execution Facility (SEF). The company also operated as a Futures Commission Merchant (FCM) without registration. Moreover, it failed to implement customer information program (CIP) and know-your-customer (KYC ) procedures, as well as…
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Changpeng Zhao founder and CEO of Binance, commented: Effective regulation is essential for the mainstream adoption of cryptocurrency. The French DASP and AML/CFT regulations put in place stringent anti-money laundering and fit and proper requirements to meet the high standards necessary to be regulated in France. Zhao added: We are grateful to the AMF and…
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The unit was created in 2017 and since then it has brought over 80 enforcement actions in cases related to fraudulent and unregistered crypto asset offerings and platforms, and has brought monetary relief of over $2 billion. The expanded Crypto Assets and Cyber Unit will use SEC’s expertise to protect investors in the crypto market.…
Read moreESMA further explained the risks behind trading crypto-assets. Many of them are are subject to sudden and extreme price movements and are speculative as their price relies solely on consumer demand. These products are often aggressively advertised to the public with market information that often can be unclear, incomplete, inaccurate or even purposefully misleading. The…
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Bitcoin, however, is unlikely to follow suit as it has no other reason to switch to PoS. The committee voted to add cryptocurrencies that use PoW to the EU sustainable finance taxonomy which decides whether something can be labelled environmentally friendly by the end of 2024. Last year, the Swedish FI called for ban of…
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Reed entered his guilty plea yesterday and will be sentenced by the US District Court. The other two co-founders of BitMEX, Arthur Hayes and Benjamin Delo, plead guilty for the same offense in February 2022. As part of their plea agreements, both Hayes and Delo each agreed to pay $10 million criminal fine. Background Established…
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