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CZ, the CEO and founder of Binance, has emphasized that crypto exchange-hosted token offerings are no less subject to regulatory hurdles than their ICO predecessors. Changpeng Zhao, the CEO and founder of top crypto exchange Binance, has underscored that exchange-hosted token offerings are no less subject to regulatory hurdles than their initial coin offering (ICO) predecessors. The CEO, better known in the industry as “CZ,” made his remarks in an interview with Bloomberg on April 10. As previously reported, so-called initial exchange offerings (IEOs) have latterly emerged as an alternative model of token offering wherein a centralized crypto exchange acts as a form of underwriter. The exchange generally operates sales and ostensibly vets both the projects themselves and prospective investors. In the interview, CZ emphasized that while IEOs may indeed offer the benefit of having a third-party do due diligence on projects, regulatory compliance issues are no less onerous for the new mo..
The New York Department of Financial Services has denied Bittrex’s application for a BitLicense. The New York Department of Financial Services (NYDFS) has denied a BitLicense application from the Bittrex cryptocurrency exchange on April 10. In a letter to Bittrex CEO Bill Shihara, NYDFS explained that the exchange had inadequate policies and controls regarding Anti-Money Laundering (AML), Know Your Customer (KYC) and Office of Foreign Assets Control (OFAC) standards. Bittrex applied for its BitLicense — which is required to conduct virtual currency related business in the state of New York — in August, 2015. Bittrex had been operating under the terms of a “safe harbor” permitted by NYDFS while the regulator considered its application. According to NYDFS, it had issued multiple compliance letters to Bittrex “to address continued deficiencies and to assist Bittrex in developing appropriate controls and compliance programs commensurate with the evolving nature of the sector.” NYDFS has o..
Securitize has launched a token compliance program for issuing security tokens. Securitize, a compliance platform and protocol for token issuers backed by United States crypto exchange Coinbase, is launching its Securitize Ready Program, according to a press release shared with Cointelegraph on April 9. Per the announcement, the program includes such industry majors as Coinbase Custody, OpenFinance, Rialto Trading, CBlock Capital and others. Users of the Securitize Ready Program will be able to use the various services offered by the partner firms to issue security tokens on the Securitize platform. The platform will purportedly make it easier for organizations to design and issue their own tokens. The announcement further states: “Securitize’s DS Protocol maintains compliance during secondary trading and enables automated features such as share buy-backs, dividends, voting, and more.” Late last year, Securitize closed a Series A funding round led by Blockchain Capital that raised $12..
Jacob Burrell Campos will also forfeit over $820,000 after remaining in state custody since August 2018. A LocalBitcoins trader who sold Bitcoin (BTC) to more than 1,000 people in the United States will serve two years in federal jail, a press release from the U.S. Attorney’s Office of the Southern District of California confirmed on April 8. Jacob Burrell Campos, a Mexican citizen, amassed more than $820,000 from Bitcoin sales on the P2P platform between 2015 and 2018. Through a combination of cash meetups, ATM transfers and MoneyGram, Burrell served traders on the site without performing anti-money laundering (AML) checks and due diligence on the source of the incoming USD funds, prosecutors said. In custody since August last year, Burrell pleaded guilty to the charges in October, acknowledging he and unnamed others took thousands of dollars across the U.S.-Mexico border daily and performed exchange transactions with Joseph Castillo, a San Diego-based precious metals dealer. In addi..
Binance has partnered with risk management firm IdentityMind to address the exchange’s KYC and AML compliance. The world’s largest crypto exchange, Binance, has partnered with risk management and compliance firm IdentityMind, Binance announced in a blog post on March 26. The companies have teamed up to address data security and compliance measures for Binance’s global operations by enabling IdentityMind’s tools for Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance. Samuel Lim, chief compliance officer at Binance, said that the ultimate mission of the partnership is to foster greater trust among financial institutions worldwide, while also to evolve security systems in accordance with regulatory policies in countries operated by Binance. Garrett Gafke, president and CEO of IdentityMind, pointed out the tremendous trading volumes on Binance, claiming that the IdentityMind platform is designed to meet the scale demands of Binance’s global operations while also providing..
Koi Trading in partnership with IdentityMind have developed an AML compliance-as-a-service product supporting cryptocurrencies. Binance-backed over-the-counter (OTC) desk Koi Trading has partnered with IdentityMind, a platform for online risk management, to develop an Anti-Money Laundering (AML) compliance-as-a-service product. The development was announced in a press release published on March 12. The parties have reportedly released an AML compliance-as-a-service product dubbed “Koi Compliance,” supporting digital currency and targeting money services businesses. The new platform will purportedly enable companies to focus on conducting their business, letting Koi Compliance to perform Know Your Customer (KYC) procedures, monitor transactions, conduct sanctions screening, and keep records. Last November, Koi Trading received $3 million in investment from Binance Labs, an incubator arm of the world’s leading cryptocurrency exchange (as of press time) Binance. The move was purportedly ..
IdentityMind powers new plug-and-play AML service for Digital Currency exchanges with Know Your Customer (KYC) and Transaction Monitoring PALO ALTO, CA, March __, 2019: Koi Trading, an innovative OTC trading desk that provides private, efficient, and compliant cryptocurrency liquidity to counterparties around the world, today announced a partnership with IdentityMind, Digital Identities You Can Trust, to provide Anti-Money Laundering (AML) compliance-as-a-service to money services businesses globally under the brand Koi Compliance. Koi Compliance offers the first plug-and-play AML compliance solution that supports the digital currency. Koi Compliance will pair their legal expertise and compliance analysts with IdentityMind’s platform that already supports over 35 digital currency exchanges worldwide. This enables companies to focus on running their business, while Koi Compliance leverages industry best practices to perform the legally required Know Your Customer (KYC), transaction moni..
The Malta Financial Services Authority appointed U.S.-based blockchain security firm to assist in tracking the compliance of crypto firms. The Malta Financial Services Authority (MFSA) has appointed blockchain security firm CipherTrace to monitor activity by crypto businesses in Malta, local news agency The Times of Malta reports on March 11. CipherTrace is now set to be responsible for overseeing regulatory processes and audit risk management of virtual asset businesses licensed in Malta, CipherTrace CEO Joseph Cuschier explained. The United States-based blockchain security company will assist the MFSA in combating money laundering and financing terrorism risks associated with entities involved in crypto businesses. As previously reported, the MFSA envisions coordinating interactions with crypto-related businesses such as initial coin offering (ICO) operators and crypto exchanges through virtual financial agents (VFA agents). Bringing a bridge between crypto operators and the island’..
As the Year of the Earth Pig has come, it is time to look back at what happened during the previous year. Happy Chinese New Year! As the Year of the Yellow Mountain Dog has drawn to a close, it is time to look back at what happened. While there was a promising start in January 2018, when most altcoins were enjoying their all-time highs, the bear eventually took over, and the market delved into the so-called “Crypto Winter.” Nevertheless, there was good news, too: The United States regulators expressed their desire to stick to “positive regulation,” while big league investors poured some funds into a number of promising, compliant crypto projects (mostly stablecoins). Here is what was happening month-by-month, along with the main takeaways. January 2018Japanese crypto exchange Coincheck was hacked, overtaking the infamous 2014 Mt.Gox collapse — an industry-record-breaking $532 million worth of NEM tokens was stolen this time. Despite the amount of damage, Coincheck has managed to stead..
U.S.-based venture firm Blockchain Capital leads a $1.7 million seed round for blockchain compliance startup TRM. United States-based investment firm Blockchain Capital has led a seed funding round for blockchain compliance startup TRM, a press release from the firm reveals Jan. 31. TRM announced today that it had a closed a funding round totalling $1.7 million. Tapas Capital, Green D Ventures, The MBA Fund, and “strategic angel investors” also participated in the round. According to TRM, the company is going to spend the funds on scaling its engineering talent and expanding the capabilities of its platform. Based in San Francisco, the firm has developed a so-called token relationship management platform to help crypto businesses streamline their Anti-Money Laundering compliance. The platform reportedly offers due diligence solutions, transaction monitoring and customer relationship management. The firm is also developing tools that use machine learning to automatically trace suspicio..
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