Decentralized finance, or DeFi, has established itself as a force capable of disrupting traditional systems. While DeFi still mostly keeps opposing itself to traditional finance, the centralized operators are actively looking for ways to integrate into the established system. The institutional interest pushes both decentralized and centralized participants to ask questions about DeFi, its role and a possible collaboration with centralized finance, or CeFi. Related: DeFi proved resilient during the March 2020 and May 2021 market crises Of course, the situation isn’t uniform for both centralized and decentralized institutions, but the main generic concerns are the following: Can there even …

Independent Reserve, an Australian crypto exchange founded in 2013, has become the first cryptocurrency exchange in Singapore to receive an “in-principle approval” to operate as a fully regulated virtual asset service provider (VASP). In a letter from the city-state’s de facto central bank, the Monetary Authority of Singapore (MAS), the exchange was approved under the terms of the Payments Services Act, which came into effect in January 2020 and provides clear-cut rules and regulations for crypto exchanges and service providers seeking to operate locally. Since January, VASPs awaiting their applications’ approval have been permitted to continue to operate under the …

Arak Sutivong, CEO of SCB 10X and the president of Siam Commercial Bank (SCB), has offered an insight into how one of the largest venture capital funds in Southeast Asia views the future of decentralized finance (DeFi) when it comes to the contentious question of regulation. SCB 10X is the venture arm of SCB, Thailand's oldest bank, and mostly focuses on investing in blockchain-based financial services, such as DeFi and digital assets. In his opening speech at SCB 10X’s second annual global DeFi virtual summit, REDeFiNE, Sutivong stressed that by now, DeFi had broken through to the mainstream “by many …

OK Group, a blockchain technology firm formerly behind cryptocurrency exchange OKEx, will start working with Chinese authorities to combat money laundering, using blockchain technology. The company’s settlement-focused subsidiary, OKLink, has reached a partnership with Nanjing Public Security Research Institute to collaborate on applying blockchain tech for Anti-Money Laundering purposes. The institute announced that the partnership will include in-depth cooperation with OKLink to promote the integration of blockchain technology for improving public security and social governance. As part of the agreement, the parties will set up a research laboratory for exploring compliance strategies and systems implementing on-chain data analysis to combat …

Eun Sung-soo, chairman of South Korea’s Financial Services Commission (FSC), said that foreign crypto exchanges that deal in the Korean won must comply with the country’s Anti-Money Laundering (AML) standards. According to The Korea Herald on Tuesday, Eun made these comments while fielding questions from lawmakers about the FSC’s plans to regulate crypto exchange giant Binance. Eun reiterated the need for overseas exchanges offering won-denominated crypto trading pairs to comply with the same Anti-Money Laundering standards as platforms based in the country. As part of this compliance, these foreign exchanges will have to register with the Korea Financial Intelligence Unit …

The Economic Commission for Latin America and the Caribbean, or ECLAC, a United Nations’ regional commission to encourage economic cooperation, is the latest regulator to raise concerns about El Salvador’s decision to accept Bitcoin (BTC) as legal tender. ECLAC executive secretary Alicia Bárcena has warned that El Salvador’s Bitcoin move poses a number of systemic risks as well as risks related to money laundering, local news agency Diario El Mundo reported Friday. Bárcena emphasized that there is no study yet that would have investigated potential risks or benefits of El Salvador accepting BTC as legal tender. She expressed confidence that …

In her monthly Expert Take column, Selva Ozelli, an international tax attorney and CPA, covers the intersection between emerging technologies and sustainability, and provides the latest developments around taxes, AML/CFT regulations and legal issues affecting crypto and blockchain. Talk about ending a stellar career at the United States Department of Justice with a bang. The DoJ’s first-ever “crypto czar,” Michele Korver, advised government attorneys, federal agents, the Department of the Treasury’s Financial Stability Oversight Council and the U.S. delegation to the Financial Action Task Force on cryptocurrency matters, and she developed cryptocurrency seizure and forfeiture policy and legislation. While she …

The European Union is looking to launch a new agency designated with cracking down on money laundering at the regional level, with increased reporting requirements around crypto transactions listed among its principal objectives. A Thursday report from Reuters citing leaked EU documents asserts that the European Commission is proposing to form a new Anti-Money Laundering Authority (AMLA) that would act as the “centerpiece” of an oversight system also including national regulators. The report also states that European lawmakers are drafting new requirements for virtual asset service providers (VASPs) mandating stringent data collection standards surrounding parties making cryptocurrency transfers. Data collected …

Bybit, the world’s fifth-largest cryptocurrency derivatives exchange by trading volume, is planning to impose Know Your Customer rules. The Singapore-based company posted several statements on introducing major KYC policies on its platform in order to “improve security compliance for all traders.” A spokesperson for Bybit told Cointelegraph that Bybit will introduce KYC procedures starting from July 12 to help better protect user accounts and funds. Individuals will have two KYC verification levels with Bitcoin withdrawals capped at 50 Bitcoin (BTC) and 100 BTC. In order to receive the KYC 1 level verification, users will be required to identity document and …

The United States’ Financial Crimes Enforcement Network will continue to closely follow the cryptocurrency industry as one of its top priorities for combating crimes like money laundering. FinCEN officially announced Thursday that “virtual currency considerations,” or operations involving cryptocurrencies like Bitcoin (BTC), will be among its top national priorities for countering terrorism financing and ensuring proper Anti-Money Laundering policies. “The establishment of these priorities is intended to assist all covered institutions in their efforts to meet their obligations” under related laws and regulations, the regulator said. FinCEN elaborated that it will soon issue regulations to specify how financial institutions should …

The United Kingdom Financial Conduct Authority’s (FCA) crypto licensing regime is reportedly proving arduous for cryptocurrency businesses looking to operate in the country. According to a Reuters report on Tuesday, the number of withdrawn licensing applications from crypto businesses increased by over 25% in June. Indeed, Cointelegraph reported near the beginning of the month that 51 crypto firms had withdrawn earlier submitted filings for registration with the FCA. An FCA spokesperson quoted by Reuters said that 13 more companies have pulled out of the approval process, bringing the total number of withdrawals to 64. Since January 2020, the FCA has …

With the implementation of new rules from South Korea’s Financial Services Commission (FSC), many smaller cryptocurrency exchanges in the country fear they will be forced to shut down. These rules require each exchange to prove that it has a real-name account held at a Korean bank by Sept. 24, 2021 — the hitch being that domestic banks are refraining from engaging in any risk assessment for applicant exchanges, save for the country's top four trading platforms. Smaller exchanges are now reportedly considering suing the government over its alleged failure to take responsibility for much of its regulatory remit, according to …