A decentralized anonymous margin trading exchange says it doesn’t require Know Your Customer checks — meaning users can begin trading as soon as they’ve generated a wallet. DMEX says it is able to operate without KYC because of how it runs on a smart contract, and positions itself as a compelling alternative to BitMEX. Most decentralized exchanges use synchronous trade executions, meaning that users have to wait for their last trade to be registered on the blockchain before they can perform a new one. DMEX addresses this by using a state-of-the-art matching engine that monitors account balances while the confirmation …

Crypto exchange and debit card provider Crypto.com has completed the acquisition of an Australian financial services company in order to secure an Australian Financial Service License, or ASFL. The acquired firm, named The Card Group Pty Ltd, has been described as specializing in "prepaid card, mobile, and wearable solutions" for enhancing cardholders' engagement. Crucially, the firm was already approved by Australia’s Foreign Investment Review Board, paving the way for Crypto.com's ASFL. With an ASFL under its belt, Crypto.com will be licensed to legally issue its proprietary card in Australia and to establish direct relationships with domestic consumers along with actors …

Major players in U.S. crypto lobbying are coming out in defense of noncustodial wallets. On Tuesday, the Blockchain Association released a new report presenting policy options for self-hosted wallets to regulators. On Wednesday, Coin Center published an expert view by Jai Ramaswamy, also defending such wallets. The Blockchain Association is a trade organization for the crypto industry, while Coin Center is a nonprofit focused on defending decentralization before policymakers. Both are based in Washington, D.C. Ramaswamy currently works on compliance for Celo's parent company, C Labs, and was formerly the head of the Department of Justice’s Anti-Money Laundering division. His …

Bitconic, a Netherlands-based Bitcoin (BTC) exchange, has informed its users that they now need to comply with a new verification measure in order to continue to use its services. The change comes following new requirements from the Dutch central bank, published in November 2019, which stipulate: “Crypto service providers must check whether their clients and any ultimate beneficiary owners (UBOs) are on a Dutch or European sanctions list and report any hits to DNB. Risk-based checks are not permitted [...] compliance also entails that institutions must check incoming and outgoing payment transfers.” Bitonic has informed customers that they must now, …

It shouldn’t come as a surprise that regulators are starting to pay close attention to cryptocurrencies this year. For instance, as the price of Bitcoin (BTC) continues to soar, it’s predicted that regulators will start taking direct action – possibly even banning Bitcoin completely. While the ban may sound extreme, regulators have recently honed in on the use of privacy coins like Monero (XMR), Zcash (ZEC) and Dash. For example, in September this year, the United States Internal Revenue Service offered a bounty of up to $625,000 for intelligence firms that could break the untraceable privacy coin Monero. Moreover, on …

In 2019, the Financial Action Task Force asked jurisdictions worldwide to adopt its regulatory guidelines for virtual assets. At the V20 conference today, held online, David Lewis—executive secretary and G20 deputy at the organization—gave an overview of how implementation and business response have gone so far. The FATF is an intergovernmental organization tasked with combating money laundering. Its 2019 directives for regulating crypto, which include a controversial section dubbed the “Travel Rule,” are designed to mitigate illicit uses of virtual assets, and to bring the sector into line with traditional banking regulations. Lewis told conference attendees that the majority of …

Every Friday, Law Decoded delivers analysis on the week’s critical stories in the realms of policy, regulation and law. Editor's note In the United States, as President Donald Trump stonewalls any efforts at transitioning to a new administration, all eyes are on Joe Biden’s potential team and any hints as to candidates for major appointed positions. Further complicating the set up of a presidential roster is that most presidential appointments require Senate approval. The Senate, meanwhile, is waiting until January for a run-off election in Georgia to establish a majority. So, as with everything else, we in the states are …

BitMEX, one of the world’s biggest Bitcoin (BTC) trading platforms, continues to strengthen its Anti-Money Laundering measures in the aftermath of its criminal charges in the United States. According to a Nov. 12 blog post, BitMEX has partnered with software and compliance firm Eventus Systems to improve its trade surveillance and AML transaction capabilities. Per the announcement, Eventus Validus‘ technology will be integrated into BitMEX’s existing trade surveillance and AML processes in order to provide a “safe and secure trading environment” for its users. “We will be able to more efficiently screen out bad actors and increase proactive monitoring for …

A former Microsoft engineer has been sentenced to nine years for stealing more than $10 million in digital value from his past employer in the form of “currency stored value," or CSV, including gift cards. Volodymyr Kvashuk, a 26-year-old Ukrainian citizen residing in Washington, used the accounts and identities of his fellow employees to steal and then sell the CSV — making it appear as though his co-workers were responsible for the fraud. Kvashuk also used a Bitcoin (BTC) mixing service to further obfuscate the paper trail, telling the Internal Revenue Service that the $2.8 million worth of crypto that …

Every Friday, Law Decoded delivers analysis on the week’s critical stories in the realms of policy, regulation and law. Editor's note Are you over the election? I’m over the election. But you can bet that as soon as I finish writing this week’s Law Decoded, I will compulsively check up on what’s happening in Georgia and Pennsylvania. And it seems that I’m not alone. Despite the election highjacking the entire news cycle, crypto has not been completely left in the corner. Likely most notable, Bitcoin is hitting highs it hasn’t seen since January 2018. Given that BTC price typically reacts …

In the last month, we’ve seen the United States Federal Reserve come after BitMEX for failing to identify customers, crypto intelligence firm CipherTrace report that most crypto exchanges are not collecting enough user info, and the so-called “FinCEN Files” demonstrate that even large banks that collect and report vast troves of suspicious transactions are not doing enough to unbank the bad guys. Suffice to say, it’s a great time to be alive for compliance hardliners and a rough patch for privacy advocates, aside from a healthy recent boost in the price of Monero (XMR). Stepping back and looking at the …

From what started as something of a “technological experiment” with Bitcoin (BTC) over a decade ago, the crypto asset industry has become a significant driver for change in global financial markets. Cryptocurrency exchanges started as a means to enable crypto enthusiasts to trade digital coins outside the traditional financial system on a decentralized and largely autonomous basis. It is likely that combined with regulatory recognition and development of digital market infrastructures, acceptance of essential Anti-Money Laundering practices, investment in security protection systems, and recognition of investor protection measures will see these businesses continue to expand and potentially merge or compete …