As we noted two days ago in Will Congress Finally Do Its Job?, the operator of the world’s largest cryptocurrency exchange, Binance, pleaded guilty and agreed to pay $4.3 billion to resolve the Justice Department’s investigation into violations related to the Bank Secrecy Act, failure to register as a money transmitting business, and the International Emergency Economic Powers Act. Additionally, Binance’s founder and CEO, Changpeng “CZ” Zhao also pleaded guilty to failing to maintain an effective anti-money laundering (AML) program, resigned as CEO of Binance and personally paid a $50 million fine to the Commodity Futures Trade Commission (CFTC) for “intentionally sabotaging and subverting Binance’s superficial compliance controls, including controls designed…
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SEC Commissioner Hester Peirce hopes better crypto regulation is coming post-election (Photo: Leo Jakobson)SEC’s Hester Peirce: Post-election crypto regulation needed
From stablecoins to decentralized exchanges, regulators are struggling to regulate a moving target said the SEC Commissioner known as “Crypto-Mom”
One concern that the agency has with the regulation of cryptocurrency assets is that while promoters stress the advantages they bring by eliminating intermediaries, securities regulators have long worked with intermediaries in functions such as anti-money-laundering and are comfortable with them.
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BitMEX hires chief compliance officer following U.S. money laundering charges
Notably, the new compliance officer is expected to bring expertise on the Financial Action Task Force’s recommendations for virtual asset service providers
Global Digital Finance’s Anti-Money Laundering Working Group advisory council Malcolm Wright is now the chief compliance officer of troubled crypto derivatives exchange’s BitMEX operator.
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Two Treasury Department agencies are sending mixed messages to banks supporting cryptocurrency (Photo: Pixabay)FinCEN’s mixed message on banks and crypto
Financial Crimes Enforcement Network Director Kenneth Blanco’s warning that banks can expect tough questions about cryptocurrencies comes in the wake of other Treasury Department rulings encouraging custody service for crypto and stablecoins
Taken together, the encouraging letter from acting Comptroller of the Currency Brian Brooks and stark warning from Financial Crimes Enforcement Network Director Kenneth Blanco present a very mixed message to banks and other financial institutions. Both agencies are part of the U.S. Treasury Department.
