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 …

Less than four days after his official acceptance speech, Joe Biden has already begun assembling a team including the former chairman of the Commodity Futures Trading Commission as part of his transition to the 46th President of the United States. According to a Nov. 10 announcement from the ‘Biden-Harris Transition’, Gary Gensler has volunteered to join President-elect Joe Biden’s team as a financial expert. The former CFTC chair will be the lead tasked with ensuring as smooth a transition as possible with the Federal Reserve and banking and securities regulators. Gensler served as chairman for the Commodity Futures Trading Commission, …

The Commodity Futures Trading Commission, or CFTC, recently approved a license modification for ErisX's clearing house. The license amendment allows ErisX freedom to offer more trading products. "The significance of the Amended Order is that it expands our licensed activities allowing us to clear products on other commodities beyond just virtual currencies or crypto," ErisX general counsel Laurian Cristea told Cointelegraph. "Now we may list futures or swaps across the commodities spectrum from new crypto related contracts such as hash rate futures or crypto indices, to event contracts, and contracts on other commodities including, for example, tokenized base metals, precious …

Per guidance released Wednesday evening, the Commodity Futures Trading Commission (CFTC) is advising businesses trading in crypto derivatives to hold customer funds very carefully. The new guidance continues the CFTC's interest in carving out rules for custodianship of virtual currencies — an area obviously distinct from any other asset class. Per the commission: "Custodians of virtual currencies are typically not subject to a system of comprehensive federal or state regulation and oversight, which includes safeguarding of these novel assets, and this raises potential risks to the protection of customer funds held at such custodians." The specific provisions of the guidance …

As part of DC Fintech Week, a digital conference on the governmental side of the financial technology sector, several international leaders gathered for an Oct. 19 panel called: Central Banks, CBDCs and Cryptoeconomics. "I don't see technological barriers in this area, but I do see technological challenges," Cecilia Skingsley, First Deputy Governor of Riksbank, the central bank of Sweden, said on the panel. "The challenge is not so much technology in itself, but it's more about — we have to choose what sort of policy objectives do we want to focus on, what is the problem we want to solve," …

Speaking at the digital LA Blockchain Summit, Commodity Futures Trading Commission chairman, Heath Tarbert, said U.S. regulation lags behind crypto and blockchain. "I would be the first to agree with you that innovation is unlikely to come from the government," Tarbert told interviewer Anthony Pompliano on Oct. 7 as part of an event segment on the role of digital securities in the derivatives market. Tarbert explained that the private sector often leads innovation, with regulators' carrying the job of overseeing such advances. He added: "I see my role as a regulator as not so much innovating ourselves, but we want …

The operator of crypto derivatives exchange BitMEX, 100x Group, has hired a seasoned Anti-Money Laundering (AML) specialist, Malcolm Wright, as its chief compliance officer. In an announcement on Oct. 12, the 100x emphasized Wright's profile as the current chairman of the Advisory Council and AML Working Group at Global Digital Finance, and as a speaker covering key topics that include the Financial Action Task Force's Recommendations for Virtual Asset Service Providers. 100X Group had last week reshuffled its top leadership, removing BitMEX's co-founders Arthur Hayes, Samuel Reed and Ben Delo from executive roles. Hayes, Reed and Delo were all charged …

Among the leadership of the Commodity Futures Trading Commission, Brian Quintenz is known as one of the leading voices in favor of crypto. His announcement in April that he would only stay “until the earlier of the confirmation of my successor or October 31, 2020,” caused quite a stir among the crypto community. But now Quintenz says that he is staying on past that October 31 end date. Quintenz told Cointelegraph: Given the time in between that announcement and when someone was actually nominated, it seemed to me like there was a chance if I were to step down in …

Recent years have seen the crypto industry mature across the global economic landscape, but it still runs into high-profile snags. On Oct. 1, the United States Department of Justice filed criminal charges against four executives of the BitMEX trading platform — including its founder, Arthur Hayes — for violating the Bank Secrecy Act. One of the executives in question has been arrested, according to a DOJ statement. Furthermore, the Commodity Futures Trading Commission also filed a civil enforcement action against BitMEX and three of its executives for violating Anti-Money Laundering regulations. The regulatory body claimed that BitMEX and its top …

BitMEX used to be the indisputable leader of Bitcoin (BTC) futures trading and if something similar to yesterday's civil enforcement action were to happen back in 2015-2018 the crypto markets would have completely collapsed. Regardless of partial recovery to $10,600, which was relatively quick, derivatives markets held steady during the $500 drop down to $10,400. Neither BTC futures or options displayed any signs of discomfort to the negative news. The futures market nearly ignored the entire event and this is a strong indicator that investors remain bullish. It also suggests that markets will be testing $12,000 sooner than one might …

On Friday, the Commodity Futures Trading Commission made a fraudster pay back $7.4 million to investors while vowing to protect the Bitcoin market. Per the CFTC's announcement, James McDonald, Director of the commission's enforcement division, said The CFTC will continue working to protect our markets, including the burgeoning markets for digital assets such as Bitcoin, from fraudulent schemes, and will work in parallel with our criminal law enforcement colleagues where appropriate. Today's announcement concerns Jon Barry Thomson, who pleaded guilty to commodities fraud for convincing two investors to send him over $7 million for a Bitcoin investment scheme that never …

Every Friday, Law Decoded delivers analysis on the week’s critical stories in the realms of policy, regulation and law. Editor's note In a tweet late last night, President Trump said that he and Melania had tested positive for COVID-19. If you weren’t already aware of that, you may want to catch up on a deluge of wishes for life and death, alongside speculation as to Trump’s announcement being a hoax, before sitting down to this week’s Law Decoded. Or possibly not. Every week leading up to the presidential election features more amplified headlines. Law Decoded is likely not the ideal …