When capital markets opened for the first time this year on Jan. 4, 2021, the focus of the front page of the Financial Times was squarely aimed at Bitcoin (BTC) with the headline: “Bitcoin tops $34,000 as record-breaking rally resumes.” That Bitcoin is seeing institutional buy-in on a level unsurpassed in its history is certain, but what does this mean for the wider crypto space? How do we move from institutional adoption of Bitcoin or other crypto assets to connecting traditional finance markets with the decentralized finance and digital asset markets? If we can achieve this lofty goal, the inflows …

49-year-old peer-to-peer crypto trader, Hugo Sergio Mejia, has agreed to plead guilty to charges of money laundering and operating an unlicensed money transmitting business. The U.S. Attorney’s Office accuses Mejia of using a suite of limited liability corporations to conceal the true nature of his operations while exchanging cash for Bitcoins over a period spanning more than two years. The complaint accuses Mejia of transferring funds between Bitcoin and U.S. dollars worth at least $13 million for clients from May 2018 and September 2020 using his companies Worldwide Secure Communications, World Secure Data, and The HODL Group. According to the …

Sen. Cynthia Lummis, a long-time proponent of Bitcoin (BTC) ownership, has revealed plans to launch a Financial Innovation Caucus to educate her fellow senators on cryptocurrency and digital assets. Appearing on Anthony Pompliano’s podcast on Feb. 2, Lummis announced her intention to establish the caucus, stating: “We hope to use it as a springboard to educate members of the U.S. Senate and their staff about Bitcoin specifically, but about other opportunities for cryptocurrency and financial innovation and blockchain.” Lummis stated the caucus will first work to fight the false narrative about digital assets and crypto being used for money laundering, …

At first glance, Know Your Customer checks and Anti-Money Laundering measures can seem incredibly cumbersome for crypto enthusiasts. But look deeper, and the importance of such regulations becomes incredibly clear. EXMO, a crypto exchange based in the United Kingdom, says consumers aren’t often aware of what goes on behind the scenes at a trading platform — and argues that it’s in a trader’s best interests to select a company that follows rules to the letter. The company pointed to how 70% of virtual currency companies in Estonia, long seen as one of the most crypto-friendly countries in the European Union, …

In keeping with the emergence of clear-cut crypto regulations across Southeast Asia, Philippines’ central bank, BSP, has enacted a broader licensing regime for digital asset firms in the country. According to the Philippine Daily Inquirer, all crypto financial service firms in the country must now be licensed by the BSP. Thus, exchanges dealing in crypto-to-crypto trading pairs and custody platforms must now obtain approval from the central bank. The expanded regulatory regime also covers cryptocurrency derivatives platforms. All crypto firms in the country will also have to comply with global financial best practices including Anti-Money Laundering and Countering the Financing …

Against great pushback from the crypto industry and as the price of Bitcoin (BTC) has reached new all-time highs several times during the last couple of months, the United States has updated its cryptocurrency Anti-Money Laundering/Combating the Financing of Terrorism laws. Related: COVID-19 pandemic spurs crypto law updates in J5 countries The Anti-Money Laundering Act of 2020 and the Corporate Transparency Act Last December, the Senate approved the National Defense Authorization Act and, as part of that legislation, passed the Anti-Money Laundering Act of 2020 and the Corporate Transparency Act. Related: EU amends AML laws for crypto trading as US …

This is the second in a three-part series based on Gary Gensler's extensive prior public statements on crypto. Here are parts 1 and 3. Gary Gensler will likely become chairman for the U.S. Securities and Exchange Commission, or SEC, in the coming days. A professor at the Massachusetts Institute of Technology, or MIT, Gensler knows his way around crypto and blockchain, evident in his leadership of a class on the subject at MIT’s Sloan School of Management. While teaching the Fall 2018 semester, Gensler gave a wealth of insight into crypto regulation. In 2018, U.S. regulators were very much struggling …

The crypto industry has boomed over the past 12 months. While 2019 began with a total market cap of $200 billion, the explosion in Bitcoin’s value resulted in this figure surging fivefold as 2020 began — and according to CoinMarketCap, the digital assets space was collectively worth $1 trillion at one point. However, as the crypto sector continues to grow and flourish, so too does crypto-related crime. Virtual assets worth $3.8 billion were lost to fraud in 2019. This figure rose to almost $4.9 billion in 2020. Fraud, money laundering and the financing of terrorism are not issues that are …

Still facing a courtroom assault in the U.S. for allegedly facilitating money laundering, BitMex is trying to show regulators that it's trying. On Jan. 12, the legally besieged crypto exchange released a blog post advertising further work with blockchain analytics firm Chainalysis. BitMex said its aim was "to identify, investigate, and stop illicit transactions." Chainalysis is known as a go-to solution for government entities looking to track crypto transactions. The firm has been instrumental to the Department of Justice's seizures of cryptocurrency, including over $1 billion in Bitcoin and its offshoots from an unnamed Silk Road hacker, as well as …

Rossen Iossifov, the convicted owner of the RG Coins crypto exchange platform, has been sentenced to 10 years imprisonment for money laundering. As previously reported by Cointelegraph, a federal jury in Frankfort, Kentucky found the Bulgarian national guilty of conspiracy to commit racketeering and money laundering back in September 2020. The guilty verdict came after only a two-week trial period. According to the United States Justice Department on Tuesday, Iossifov and other RG Coins principal actors participated in an elaborate money laundering conspiracy that defrauded at least 900 Americans to the tune of over $7 million. As part of the …

BitMEX has announced the completion of its user verification program, becoming one of the largest crypto trading platforms with a fully certified customer base. As part of the process to verify its entire use base, BitMEX says open positions held by unverified accounts have been closed. Back in Aug. 2020, the platform revealed plans to undertake a comprehensive user identity verification exercise. The move came amid increasing regulatory scrutiny over the platform's notoriously lax Know Your Customer, or KYC, policies. As previously reported by Cointelegraph, the United States Commodity Futures Trading Commission charged BitMEX for illegally operating a derivatives trading …

Kyrgyzstan’s central bank has completed the drafting of two bills designed to recognize and regulate the country’s emerging crypto sector. According to an official announcement, the National Bank of the Kyrgyz Republic has opened up the two bills, "On the Processing of Cryptocurrencies" and "On amendments to legislative acts in the field of virtual assets," to public discussion. Interested parties have until Feb. 21 to submit their comments and concerns regarding the legislation. The proposed legislation seeks to recognize cryptocurrency exchanges, outlining that exchanges must be operated by legal entities licensed with the country’s central bank. The bill contains reporting …