Sweden sees crypto exchanges as professional money launderers

Swedish authorities label certain cryptocurrency exchanges as key enablers of organized crime, highlighting four distinct money-laundering profiles.

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Owner of unlicensed UK crypto ATM network faces criminal charges

The FCA is throwing the book at the head of Gidiplus Limited for operating an ATM network after being denied registration.

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Thai authorities raid illegal Bitcoin mine behind local power outages

Illegal Bitcoin mining has been a growing problem in Southeast Asia, with operators exploiting the regions relatively low electricity costs

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Canada to sanction LiquiTrade for Securities Act violation

The BCSC finds LiquiTrade guilty of running an illegal exchange, which could result in sanctions ranging from fines to a ban.

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Zimbabwe central bank ironing out wrinkles in new currency

The new currency, an outgrowth of the governments gold-backed token, is performing well economically but receiving mixed public reviews.

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FCA busts suspects in $1.2B illegal crypto asset business

FCA arrests two suspects involved in a $1.2 billion illegal crypto asset exchange, highlighting the agencys efforts to combat financial crime.

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Paraguay seizes 2,738 ASICs as power theft crackdown continues

Power-intensive crypto mining is controversial in Paraguay, where an attempt at crypto regulation was vetoed because of it.

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Cryptocurrency Weaponized: Southeast Asias Crime Rings Fuel World Fraud, UN Reports

A UN report has revealed how Southeast Asia's cybercrime groups use cryptocurrency, illegal exchanges, and advanced technologies.

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United Kingdom Issues Landmark Criminal Sentence for Illegal Crypto ATMs

A crypto ATM operator in the UK has been sentenced in the first case of its kind involving unregistered cryptocurrency. The individual was found guilty of running illicit crypto ATMs without proper registration, violating regulations set forth by the authorities. The operator’s illegal activities were uncovered during an investigation into the usage of unregistered crypto [...]

The post United Kingdom Issues Landmark Criminal Sentence for Illegal Crypto ATMs appeared first on Crypto Breaking News.

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Top 5 South Korean Crypto Exchanges Reveal Compliance Strategies to Curb Illicit Activities

According to a statement published by the South Korean Financial Services Commission (FSC), the entity’s Korea Financial Intelligence Unit held a meeting with virtual asset service providers (VASPs) in order to strengthen regulatory compliance. The top five South Korean cryptocurrency exchanges including Upbit, Bithumb, Coinone, Korbit, and Gopax have created compliance systems to monitor illegal [...]

The post Top 5 South Korean Crypto Exchanges Reveal Compliance Strategies to Curb Illicit Activities appeared first on Crypto Breaking News.

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CFTC Sues Binance, CEO for Illegal Derivatives Exchange: “Numerous Violations”

<p class="MsoNormal">The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against cryptocurrency exchange Binance and Changpeng Zhao, its Chief Executive Officer, for “numerous violations of the Commodity Exchange Act (CEA) and CFTC regulations. The US derivatives market regulator also charged Binance for operating an illegal digital asset derivatives exchange.</p><p class="MsoNormal">The agency disclosed these on Monday, noting that it filed the charges before a district court in Illinois. According to the regulator, Binance acted as “a designated contract market or swap execution facility” by processing derivatives transactions without being registered.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Today the CFTC charged Binance and its founder, Changpeng Zhao, with willful evasion of federal law and operating an illegal digital asset derivatives exchange. Learn more: <a href="https://t.co/DdczFgvW6A">https://t.co/DdczFgvW6A</a></p>— CFTC (@CFTC) <a href="https://twitter.com/CFTC/status/1640378562619355137?ref_src=twsrc%5Etfw">March 27, 2023</a></blockquote><p class="MsoNormal">The watchdog said it also charged Binance Holdings Limited, Binance Holdings (IE) Limited and Binance (Services) Holdings Limited. These entities and others were deployed by Zhao to run the trading platform via “an intentionally opaque common enterprise.”</p><p class="MsoNormal">CFTC <a href="https://www.financemagnates.com/cryptocurrency/exchange/cftc-probes-binance-over-accepting-us-derivatives-traders/" target="_blank" rel="follow">has been investigating Binance since at least 2021</a> when insider sources told Bloomberg the derivatives regulator was probing the leading cryptocurrency exchange seeking to determine if the exchange was permitting US citizens to trade derivatives without being registered.</p><p class="MsoNormal">CFTC Blasts Binance’s “Sham” Compliance</p><p class="MsoNormal">In the complaint, CFTC alleged that starting from July 2019, Binance, after supposedly barring US customers from trading on its platform, actually instructed them on the best methods to evade its compliance controls. This process was particularly targeted at the exchange’s “commercially valuable US-based VIP customers,” CFTC said</p><p class="MsoNormal">Furthermore, for a considerable amount of time since July 2019, Binance failed to verify the identity of its customers. In addition, the exchange “failed to implement basic compliance procedures designed to prevent and detect terrorist finance and money laundering.”</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">CFTC appears to have some internal chat logs, doesn't sound great on paper“Like come on. They are here for crime.” “we see the bad, but we close 2 eyes.” <a href="https://t.co/SvK7hdwSnp">pic.twitter.com/SvK7hdwSnp</a></p>— db (@tier10k) <a href="https://twitter.com/tier10k/status/1640371236847988739?ref_src=twsrc%5Etfw">March 27, 2023</a></blockquote><p class="MsoNormal">In its complaint, CFTC also accused Binance of directing its employees to discuss control evasion with US-based customers using a messaging application that automatically deletes chats. This was done to erase evidence of the exchange’s efforts to retain its customers in the country, CFTC alleged.</p><p class="MsoNormal">“Defendants’ alleged willful evasion of U.S. law is at the core of the Commission’s complaint against Binance,” noted Gretchen Lowe, CFTC’s Enforcement Division Principal Deputy Director and Chief Counsel.</p><p class="MsoNormal">“The defendants’ own emails and chats reflect that Binance’s compliance efforts have been a sham and Binance deliberately chose – over and over – to place profits over following the law,” Lowe added.</p><p class="MsoNormal">CFTC Slams Charges on Samuel Lim, Binance’s Ex-CCO</p><p class="MsoNormal">Meanwhile, CFTC said it also charged Samuel Lim, Binance’s former Chief Compliance Officer (CCO), with aiding and abetting the cryptocurrency exchange’s violations between 2018 and 2022. The former CCO partook in activities to help customers circumvent Binance’s compliance controls, the regulator said.</p><p class="MsoNormal">For instance, Lim promoted a policy that “instructed Binance’s US customers to access the trading facility through a virtual private network to avoid Binance’s IP address-based controls or create ‘new’ accounts through off-shore shell companies to evade Binance’s KYC-based controls,” CFTC explained.</p><p class="MsoNormal">“For years, Binance knew they were violating CFTC rules, working actively to both keep the money flowing and avoid compliance. This should be a warning to anyone in the digital asset world that the CFTC will not tolerate willful avoidance of U.S. law,” explained Rostin Behnam, CFTC Chairman.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">1/ CFTC Sues Binance &amp; CZIn its complaint, the CFTC reaffirms its position that Bitcoin and Ethereum are commodities &amp;It declares Tether, BUSD and LTC are commodities!The CFTC has officially thrown down the gauntlet to the SEC and the "everything is a security" crowd.</p>— MetaLawMan (@MetaLawMan) <a href="https://twitter.com/MetaLawMan/status/1640393092476829697?ref_src=twsrc%5Etfw">March 27, 2023</a></blockquote><p class="MsoNormal">Binance and SEC</p><p class="MsoNormal">CFTC's action against Binance comes days after Coinbase, the largest cryptocurrency exchange in the United States, <a href="https://www.financemagnates.com/cryptocurrency/regulation/coinbase-expects-enforcement-action-amid-secs-wells-notice/" target="_blank" rel="follow">disclosed that it received a Wells notice</a> from the US Securities and Exchange Commission (SEC), suggesting possible regulatory actions.</p><p class="MsoNormal">Reports also emerged last year that<a href="https://www.financemagnates.com/cryptocurrency/news/sec-probing-binance-us-ties-with-two-affiliate-market-makers/" target="_blank" rel="follow"> the SEC was probing</a> the relationship between Binance's US arm and two market makers and trading affiliates, Sigma Chain AG and Merit Peak Limited. SEC over the years has also been <a href="https://www.financemagnates.com/cryptocurrency/sec-takes-gemini-genesis-to-court-for-selling-unregistered-securities/" target="_blank" rel="follow">taking actions against crypto firms</a> for their crypto offerings which it categorizes as unregistered securities.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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Binance Sued by CFTC for Alleged Violations of Trading and Derivatives Rules

The world’s largest crypto exchange by trade volume, Binance Holdings Ltd., has been sued by the U.S. Commodity Futures Trading Commission. Binance CEO Changpeng Zhao has been named in the lawsuit and the charges claim the crypto exchange broke several trading and derivatives rules. The lawsuit also names Binance’s former chief compliance officer, Samuel Lim, [...]

The post Binance Sued by CFTC for Alleged Violations of Trading and Derivatives Rules appeared first on Crypto Breaking News.

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Report: Dozens of Chinese Nationals Arrested in Libya for Operating Illegal Crypto Mining Farm

Around 50 Chinese nationals have reportedly been apprehended by Libyan authorities following allegations of running a cryptocurrency mining facility within the city of Zliten, local reports detail. Cryptocurrency mining is strictly prohibited by law in Libya. Libyan law enforcement officials have disclosed that the mining operation, situated in an abandoned iron factory, was effectively dismantled.

The post Report: Dozens of Chinese Nationals Arrested in Libya for Operating Illegal Crypto Mining Farm appeared first on BTC Ethereum Crypto Currency Blog.

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Crypto travel rule implementation ‘remains relatively poor,’ says FATF

A renewed call from the Financial Action Task Force (FATF) has asked countries to implement the “travel rule” to combat money laundering and terrorism financing activities enabled by cryptocurrencies. On June 23, the United Nations body — whose role is to promote strategies to combat money laundering and terrorist financing — explained that “many” member [...]

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Just in: Malaysian SEC charges Huobi Global for illegal DAX operations

Cryptocurrency businesses continue to meet increased regulatory woes as they strive to satisfy worldwide demand. For instance, Huobi Exchange has met several challenges within the last few years. Besides leaving Thailand and managerial differences, the crypto company has yet another hurdle from Malaysian watchdogs. The latest cryptocurrency news reveals that the Securities Commission Malaysia has …

<p>The post Just in: Malaysian SEC charges Huobi Global for illegal DAX operations first appeared on CCNC | Cryptocurrency Newscast.</p>

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Kazakhstan Shuts Down Crypto Exchange That Transferred $34 Million Through Binance

Authorities in Kazakhstan have busted an illegal crypto trading platform, seizing over $350,000. The exchange allegedly processed almost $34 million in transactions through wallets on Binance, two of which have been blocked during the ongoing investigation. Digital Asset Exchange Making Millions in Turnover Closed Down in Kazakhstan A platform illegally trading cryptocurrencies in Kazakhstan, ABS [...]

The post Kazakhstan Shuts Down Crypto Exchange That Transferred $34 Million Through Binance appeared first on Crypto Breaking News.

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FCA Cracks Down on Unregulated Cryptocurrency ATM Providers in London

<p>The Financial Conduct Authority (<a href="https://www.financemagnates.com/tag/fca/" target="_blank" rel="follow">FCA</a>) has recently taken action against unregistered cryptocurrency automated teller machines (ATMs) operating in East London. The FCA has warned the public against using these unregulated machines, which may facilitate <a href="https://www.financemagnates.com/terms/m/money-laundering/" class="terms__main-term" id="f30ffb65-351e-44d6-9dae-0714f08b59b2" target="_blank">money laundering</a> and other criminal activities.</p><p>FCA Warns Against Unregistered Crypto ATMs</p><p>In the press release issued by the FCA, the regulatory body stated that it has been investigating unregistered crypto ATM providers for several months. The FCA found that many of these providers did not have the necessary registration to operate legally.</p><p>Cryptocurrency ATMs have become increasingly popular in recent years, with many individuals using them to buy and sell digital currencies, such as <a href="https://www.financemagnates.com/tag/bitcoin/" target="_blank" rel="follow">Bitcoin </a>and Ethereum. However, the FCA warns that unregistered providers may not have the necessary safeguards in place to prevent illegal activities such as money laundering.</p><p>"Crypto ATMs operating without FCA registration are illegal and, as today shows, we will take action to stop this. This operation, alongside last month's action in Leeds, sends a clear message that we will continue to identify and disrupt unregistered crypto businesses in the UK," Mark Steward, the Executive Director of Enforcement and Market Oversight at the FCA, commented.</p><p>The FCA <a href="https://www.fca.org.uk/news/press-releases/fca-takes-action-against-unregistered-crypto-atm-operators-leeds">has already taken similar steps</a> to prevent unregistered ATM providers from operating in Leeds. The regulatory body has issued a number of warnings to unregulated crypto companies, instructing them to cease operations immediately. Additionally, the FCA has initiated legal proceedings against some providers who did not comply with its warnings.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">We will continue to identify and disrupt unregistered <a href="https://twitter.com/hashtag/crypto?src=hash&ref_src=twsrc%5Etfw">#crypto</a> businesses operating in the UK. <a href="https://t.co/ctaqQIJcAG">https://t.co/ctaqQIJcAG</a></p>— Financial Conduct Authority (@TheFCA) <a href="https://twitter.com/TheFCA/status/1625457407915708419?ref_src=twsrc%5Etfw">February 14, 2023</a></blockquote><p>FCA Push to Regulate Crypto Industry</p><p>This action by the FCA is an essential step towards regulating the cryptocurrency industry in the UK. Cryptocurrency is a relatively new and rapidly evolving technology, and regulatory bodies are struggling to keep up with its pace of development. However, the FCA's actions demonstrate that it is committed to protecting consumers and preventing criminal activities in the cryptocurrency industry.</p><p>The UK's financial market supervisor <a href="https://www.financemagnates.com/cryptocurrency/fca-seeks-crypto-firms-preparedness-for-upcoming-promotions-regime/" target="_blank" rel="follow">announced last month</a> that all local and overseas crypto companies marketing to UK consumers must comply with the country's upcoming new financial promotions regime.</p><p>"Acting now will help ensure they can continue to legally promote to UK consumers. We encourage firms to take all necessary advice as part of their preparations," the FCA stated.</p><p>In 2022, the <a href="https://www.financemagnates.com/terms/f/financial-conduct-authority-fca/" class="terms__secondary-term" id="4c85a54d-15e0-4e44-a214-8c55f71cb286" target="_blank">Financial Conduct Authority (FCA</a>) reported that it had turned down <a href="https://www.financemagnates.com/fintech/uk-regulator-clamps-down-on-1400-more-rogue-financial-ads-in-2022/" target="_blank" rel="follow">8,582 financial promotions</a>, demanding that they be removed or modified. Additionally, the regulatory body issued over 1,800 warnings about scams to safeguard investors against fraudulent schemes.</p><p>Furthermore, the FCA has urged the public to exercise caution when using cryptocurrency ATMs. The regulatory body recommends that individuals only use registered providers and ensure they comply with anti-money laundering regulations.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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South Koreans transacted $4.3 billion through illegal crypto exchanges

In 2022, South Koreans transacted $4.3 billion through illegal crypto exchanges, comprising almost 70% of all illicit money traffic captured by officers. The transactions aimed to purchase foreign virtual assets to sell in the country later due to the South Korean regulatory regime isolating the local market. (Read More)

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Australian regulator sues Finder.com for crypto yield offering

Australia's financial services authority is suing Finder.com for selling a bitcoin yield-bearing instrument without a license. Finder disputes ASIC's accusation that a registered exchange product was unlicensed, but it hasn't said whether it would contest the complaint. After Block Earner last November, it's the regulator's second domestic crypto income product supplier. ASIC sued Finder.com for selling three crypto-backed fixed-yield products without an AFS license. The regulator's third action against crypto financial products and businesses in three months. When asked whether it will fight the action, Finder declined to respond. (Read More)

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South Korea Identifies $7.2B Drained Though Crypto Exchanges

South Korean authorities have raided one of the biggest banks in connection with the illegal crypto transfer investigation.

Continue reading South Korea Identifies $7.2B Drained Though Crypto Exchanges at DailyCoin.com.

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