Elevate your DeFi profile, and put compliance and regulatory risks to rest.
US regulators are looking for cryptocurrency sacrificial lambs. Digital assets business owners who ignore anti-money laundering (AML) laws are wearing a regulatory bullseye.
A case in point is the Seychelles-based cryptocurrency exchange BitMEX.
In July, Coindesk announced that BitMEX was under investigation by the U.S. Commodity Futures Trading Commission (CFTC).
The CFTC took the view that BitMEX was selling commodities to Americans without registration.
Then it’s COO, Angelina Kwan, the former MD and Head of Regulatory Compliance at HKEX, left, BitMEX.
On October 1, 2020, the CFTC charged the owners of BitMEX, Arthur Hayes, Ben Delo, and Samuel Reed.
The complaint alleged that BitMEX is an unregistered trading platform and violated multiple CFTC regulations, including failing to implement required anti-money laundering procedures.
If you operate a DeFi platform, I have good news for you.
You could elevate the reputation of your DeFi platform and put compliance and regulatory risks to rest.
With the appropriate DeFi Compliance program, you can avoid the allegation that the decentralized financial services you offer provide a money-laundering safe haven.
With the appropriate DeFi Compliance program, you can implement protocols to:
- Report malicious cryptocurrency addresses;
- Identify ransomware hacks and other types of fraud; and
- Block suspicious users and questionable funds from transacting on your DeFi platform;
Most importantly, you will have a solution for AML and Bank Secrecy Act (BSA) compliance, where necessary.
Remember, the Financial Action Task Force (FATF) regulations including the “Travel Rule” which requires Virtual Asset Service Providers (VASPs) to collect and transfer customer information during transactions.
Are you ready for positive press reports on your DeFi compliance protocols?
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