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Bitcoin Compliance

Contortions For Compliance: Life Under New York's Bitlicense

Contortions For Compliance: Life Under New York's Bitlicense

Contortions for Compliance: Life Under New York's BitLicense Jan 21, 2018 at 12:40 UTC|UpdatedJan 22, 2018 at 08:01 UTC Sarah H. Brennan, a corporate and securities attorney, leads the blockchain technology, cryptocurrency and digital assets practice team at Lippes Mathias Wexler Friedman LLP. In June 2015, in a race to be a first mover in the space, the New York Department of Financial Services (DFS) enacted the BitLicense regulatory framework, a licensing regime that covers substantially all "virtual currency business activity" to the extent it touches New York or its residents. Namely, any business engaging in virtual currency business activity involving New York State or persons that reside, are located, have a place of business, or are conducting business in New York must apply for the BitLicense, with no grace periods or de minimis exceptions. To the extent a business makes it through the licensing process and receives a BitLicense, as a whopping four businesses have to date (in addition to two companies who undertook the application process and received trust charters ), the BitLicense imposes significant operational burdens, requiring robust compliance policies and processes with respect to anti-fraud, anti-money-laundering, cybersecurity, privacy and information security, among other requirements. As such, the BitLicense has prompted flight from New York by larger players such as Bitfinex and Shapeshift and has had a chilling effect on others acting in an abundance of caution. For those of us who remain in New York because we happen to live here, there is a widespread sense of confusion as to the scope of activities which fall under the purview of the regulations given: their vague wording, requirements that seem positioned toward financial institutions and th Continue reading >>

Anti Money Laundering Compliance - Bitcoin Tax Solutions

Anti Money Laundering Compliance - Bitcoin Tax Solutions

We know how complex and overwhelming anti-money laundering compliance can be. We also know that failure to comply can result in fines, forced closure of your business,and criminal prosecution. Our Bitcoin AML compliance services are designed tolet you focus on your business, while enjoying the peace of mind that comes from knowing youre in full compliance with federal laws and regulations. The Financial Crimes Enforcement Network (FinCEN) has determined that Exchangers of virtual currency must register as money-transmitters and comply with federal anti-money laundering laws. An Exchanger is a person engaged as a business in the exchange of virtual currency for real currency, funds, or other virtual currency. The following are three of the most common examples of activities that qualify as exchanging, and therefore require AML compliance: Buying or Selling Bitcoins through LocalBitcoins Operatinga Bitcoin ATM or similar service Sellinggold, silver, or other forms of bullion in exchange for Bitcoin Whats included in our AML Compliance Service? Our Bitcoin AML Compliance Service provides everything you need to comply with federal anti-money laundering laws by: PerformingaMoney Laundering Risk Assessment Preparingacustomized Anti-Money Laundering Policy for your business Providing a one-hour training course on AMLCompliance Answeringunlimited compliance related questions Get started on yourBitcoin AML Compliance If you are concerned that you might be subject to federal anti-money laundering laws, click below to schedule an AML Consultation. The cost of the consultation is $199, but we will credit this amount towards the cost ofour AML Compliance Servicesif you end up hiring us. Continue reading >>

Anti-money Laundering For Bitcoin And Digital Currencies

Anti-money Laundering For Bitcoin And Digital Currencies

Anti-Money Laundering for Bitcoin and Digital Currencies A Cost-Effective Way to Comply with Worldwide Regulations IdentityMindoffers a full Anti-Money Laundering (AML) program enabling Banks, Money Services Businesses, and Money Transmitters to meet U.S. (FinCEN) and worldwide regulations. IDMRisk offers a full Anti-Money Laundering (AML) program enabling virtual currency companies, including Bitcoin Exchanges, to meet U.S. (FinCEN) and worldwide regulations. Our AML program provides you with a fully integrated suite combining professional services and technology to help you: Protect your business against Money Laundering: you can now apply strict customer identification verification and implement automated transaction monitoring policies and procedures. Establish important banking partnerships: to grow and thrive as a trusted company in the virtual currency world, you need support from traditional banks and financial institutions. Our AML program will offer you the protection, processes, visibility and reporting you need to build and maintain these partnerships. Save money and time: our highly automated AML program ensures you receive the best quality product at a reasonable price. You receive the best professional services coupled with advanced technology. The turn-key AML program you need to establish strategic banking partnerships. Strong protection against Money Laundering Know if the personal information presented by your customer matches the data captured from the transaction, or other information available on public and private databases. Automatically detect the most sophisticated money laundering schemes, and find signs of suspicious activity. Weve put years of experience in the Anti-Money Laundering field and superior technology, at your service. Multiple O Continue reading >>

South Korea To Inspect 3 Banks Over Cryptocurrency Exchange Compliance

South Korea To Inspect 3 Banks Over Cryptocurrency Exchange Compliance

South Korea to Inspect 3 Banks Over Cryptocurrency Exchange Compliance Open Positions at CCN: Full Time and Part Time Journalists Wanted. South Koreas primary financial regulator has confirmed upcoming inspections of three major domestic banks that provide services to cryptocurrency exchanges over their compliance with new AML norms. In a statement on Monday, the Financial Services Commission (FSC) said it will be conducting on-site inspections of Nonghyup Bank, Kookmin Bank and Hana Bank between April 19 and April 25 to scrutinize their adherence to newly introduced anti-money laundering (AML) and know-your-customer (KYC) rules. Joining the FSC is the Korea Financial Intelligence Unit (FIU), a watchdog with the mandate to prevent money laundering and illegal financial flows. NongHyup Bank, in particular, is notable for servicing Coinone and Bithumb, two of South Koreas largest cryptocurrency exchanges. As reported previously, South Korean regulators moved to ban anonymous cryptocurrency trading through anonymous virtual bank accounts offered by domestic banks. The move saw at least six banks issuing new trading accounts for cryptocurrency transactions with new measures that mandates a matching real name between the traders bank account and the crypto-exchange account. On January 30, the ban on anonymous trading kicked in and multiple banks began to offer accounts that complied with the new KYC-mandate. With its inspection, the FSC and the FIU said they would focus on a number of details including checks on the number of trading accounts syncing with the exchanges and their respective deposits, their trading volume and more alongside checking for AML adherence. The FIU also moved to urge other financial institutions to conduct their own inspections and audits to ensure Continue reading >>

Are Your Employees Trading Bitcoin? Addressing Cryptocurrencies In Compliance Policies

Are Your Employees Trading Bitcoin? Addressing Cryptocurrencies In Compliance Policies

By Stephen Wink , Douglas Yatter , Yvette Valdez , John Sikora Jr. , Simon Hawkins , Stuart Davis , Naim Culhaci , J. Ashley Weeks and Kenneth Hui - Latham & Watkins How should broker-dealers, investment advisers, and other registered firms in the US, UK, and Hong Kong address cryptocurrencies in their compliance programs? The US Securities Exchange Commissions (SEC) stated view that many cryptocurrencies are in fact securities suggests that broker-dealers and investment advisers should factor cryptocurrencies into their compliance programs, as their employees may seek to participate personally in the cryptocurrency markets. Broker-dealers and investment advisers are required to establish and enforce compliance policies and procedures reasonably designed to prevent federal securities law violations and to prevent the misuse of material non-public information. To the extent a particular cryptocurrency or token is found to be a security, the firms compliance policies, including personal trading policies, should apply to trading in the instrument. Moreover, even if a cryptocurrency or token is not a security, firms might consider establishing policies and procedures to prevent the misuse of material non-public information in the trading of cryptocurrencies as commodities. In this article, Lathams financial regulatory and enforcement lawyers provide guidance on the evolving landscape for these compliance risks in the cryptocurrency and digital token markets. Compliance Policies and Procedures and Supervisory Obligations Investment advisers and broker-dealers have responsibility for preventing federal securities law violations. For example, Section 206(4)-7 of the Investment Advisers Act of 1940 (Advisers Act) requires investment advisers to adopt and implement written poli Continue reading >>

Compliance For Bitcoin, Virtual Currencies And Storage And Backup

Compliance For Bitcoin, Virtual Currencies And Storage And Backup

Compliance for Bitcoin, virtual currencies and storage and backup How do virtual currencies such as Bitcoin work and what are the implications for IT users? The use of virtual currencies is maturing , and responses to their use are rapidly evolving. Virtual currencies are a paradigm-busting phenomenon that test the existing frameworks of central banking, taxation and currency. Computer Weekly's buyer's guide to GDPR compliance This 12 page buyer's guide gives you the tools you need to get up to scratch with GDPR compliance and to understand the mythology surrounding the new rules. This email address doesnt appear to be valid. This email address is already registered. Please login . You have exceeded the maximum character limit. Please provide a Corporate E-mail Address. I agree to TechTargets Terms of Use , Privacy Policy , and the transfer of my information to the United States for processing to provide me with relevant information as described in our Privacy Policy. Please check the box if you want to proceed. I agree to my information being processed by TechTarget and its Partners to contact me via phone, email, or other means regarding information relevant to my professional interests. I may unsubscribe at any time. Please check the box if you want to proceed. By submitting my Email address I confirm that I have read and accepted the Terms of Use and Declaration of Consent. Virtual currencies, such as Bitcoin , are also a concern for IT professionals, as potential administrators of systems that may use them. So, what are the compliance implications of the use of virtual currencies and what are the knock-on effects on storage and backup? In this podcast, ComputerWeekly.com storage editor Antony Adshead talks with CEO of Vigitrust , Mathieu Gorge, about the definitio Continue reading >>

Japan: 2 Bitcoin Exchanges Choose Shutdown Over Regulatory Compliance

Japan: 2 Bitcoin Exchanges Choose Shutdown Over Regulatory Compliance

Japan: 2 Bitcoin Exchanges Choose Shutdown Over Regulatory Compliance Japan is to lose the Mr. Exchange and Tokyo GateWay crypto exchanges as regulators step up requirements after the Coincheck hack. Japans financial services regulator continues to reshape the countrys cryptocurrency exchange industry as two operators announce they are closing, local source Nikkei states March 28. Two Japanese exchanges, Mr. Exchange and Tokyo GateWay, will cease trading once they have returned customer funds, according to Nikkei. The news comes as financial regulator, the Financial Services Authority (FSA) challenges exchanges to prove their security credentials in the wake of Coinchecks $530 mln hack in January. As a result of FSA inspections and requests, several operators have opted to stop servicing the Japanese market, Cointelegraph previously reported . Prior to their closure, Mr. Exchange and Tokyo GateWay were both in the process of securing a license as part of a scheme introduced by Japan in April 2017. In a blog post March 29, the former confirmed it had withdrawn its application: While this is a regrettable result, at present we have determined that it is difficult to be in a state of readiness to be able to respond to changes in the virtual currency landscape, so we decided to withdraw the application for a virtual currency exchange business. Tokyo GateWays website is currently offline, with no official correspondence available to confirm the Nikkei report. The FSA meanwhile continues to drip-feed new market players to Japanese consumers, with 16 exchanges obtaining a license since the scheme opened. This week, internet giant Yahoo! announced it would seek to launch its own operation by April 2019. Continue reading >>

Virtual Currencies | Identitymind Global

Virtual Currencies | Identitymind Global

ACCELERATED COMPLIANCE FOR VIRTUAL CURRENCY STARTUPS Virtual currency is the future. You know that or you wouldnt be in the business. And like many hot industries that are the future, virtual currency has been visited by the present regulation. As a virtual currency company, you need to be fully-compliant with the current slate of AML and sanctions screening regulations in order to grow your business and stay away from fines. And, of course, theres the risk of new online customers. IdentityMind can help. IdentityMind is a risk and compliance platform that lets you see whos on the other end of the transaction. We have helped many of the top virtual currency companies automate their compliance, and reduce their fraud losses. We help you identify the good guys you want to do business with and the bad guys you want to avoid. And, we enable you to modify your risk process on the fly, adding in additional checks where merited so you can show the good guys the fast lane and the bad guys the exits. Use the IdentityMind platform as your main fraud and compliance system or use our API to layer our capabilities on your existing platform. Our standards-based platform and knowledgable team can get can get you integrated and up and running, and processing payments as soon as possible. Our eDNA technology, through machine learning, builds digital identities and analyzes them to provide a more accurate picture of risk, enabling better customer selection and fewer rejections of good customers. Our algorithms provide reputations for each entity tailored for the industry in which you do business. We automate risk and compliance processes so that you dont need an army to handle your high volumes. When you do need to escalate to a manual review, well alert your team and create a case so th Continue reading >>

Bitcoin: The Path To Regulation

Bitcoin: The Path To Regulation

The value of one bitcoin surpasses the value of an ounce of gold for the first time The Winklevoss Bitcoin Trust Exchange Traded Fund (ETF) was rejected by the United States Securities and Exchange Commission due to the lack of regulation in the Bitcoin space At its inception, Bitcoin flourished among parties that wanted to remain anonymous, as personally identifiable information is not required to create a Bitcoin address or account, and thus transact using bitcoins. These parties included both libertarians wishing to be free of a centralised authority, as well as counterparties in underground marketplaces, such as Silk Road, using bitcoins to trade contraband items without the risk of being identified. The latter led to the association of Bitcoin with illegal activities in the early days. However, this stigma is now a perception of the past. A recent study analysing patterns in Bitcoin transactions from 2009 to 2015 found that, while the initial growth stage consisted largely of transactions for sin enterprises, the system matured into largely legitimate transactions by the end of 2013. 4 Obi Nwosu, Managing Director of Coinfloor, says that its clients, who all undergo know-your-customer (KYC) compliance checks, are using bitcoins for currency hedging, investment, trading, payment processing and many other legitimate activities. Demand for legitimate Bitcoin services is growing. As of April 2017, there are approximately 200,000-350,000 global Bitcoin transactions per day, making it by far the most dominant cryptocurrency in the world. 5 Virtual Currency Exchange Providers (VCEPs) and Custodial Wallet Providers (CWPs) are presently not regulated in the European Union and, therefore, are under no obligation to identify suspicious activity. 6 This could allow the misuse Continue reading >>

Bitcoin Regulation: Cryptocurrencies, Aml/kyc And Compliance

Bitcoin Regulation: Cryptocurrencies, Aml/kyc And Compliance

Bitcoin Regulation: Cryptocurrencies, AML/KYC and Compliance Is Bitcoin legal? Is it a security, currency, digital token, a form of property, or a vehicle for money transmission? To add to the complexity, Bitcoin is only one cryptocurrency, and each has its own structure, governance, purpose, backers and technology. The answers are quickly becoming more than a theoretical issue as billions of dollars roll into Bitcoin , Ether, other cryptocurrencies and new ICOs (Initial Coin Offerings). Many call it a bubble that will soon burst, resulting in huge losses. Others consider it the start of the one of the biggest opportunities in our lifetime. With all the speculation and hype, you know regulators are closely monitoring the situation. As with many new technologies, in the beginning Bitcoin had few participants and no regulation. But, as the stakes get higher, involving more people, a legal framework begins to take shape. As it has been around since 2009, there are already laws that cover it in certain jurisdictions . While Bitcoin is legal in certain countries, thats not the end of the regulation question. How are you using it? Are you a money services business (MSB)? Are you trying to raise funds and need to consider security regulators? What are the tax liabilities? Many of these issues need clarification, as different regulators examine the ramifications. In the US, Bitcoin exchanges are considered MSBs. FinCEN issued a guidance regarding Persons Administering, Exchanging, or Using Virtual Currencies : In addition, a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitu Continue reading >>

The Compliance And Kyc Link Between Banks, Bitcoin And Exchanges

The Compliance And Kyc Link Between Banks, Bitcoin And Exchanges

The compliance and KYC link between banks, bitcoin and exchanges With cryptocurrency vastly on the rise, crypto proponents are pushing for more open financial systems to, in part, serve the under-banked and reduce transaction costs. However, as interest and participation increase, banks are no less leery of this maturing industry. Mass adoption of cryptocurrency by retailers, payment processors, and banks is key to the realization of the advantages cryptocurrencies pose, including speed of transactions, traceability, and transparency. In this maturing industry, regulatory compliance initiatives are a critical step in bridging these gaps. In the current underregulated market, cryptocurrency firms taking a proactive stance on regulatory compliance possess distinct advantages that are easily attributable to the industrys widespread growth and attention. The first-movers in establishing effective anti-money laundering (AML), anti-fraud, FCPA, cybersecurity, and CFTC, and related controls are likely to avoid the future pain of regulatory scrutiny. To be clear, the organizations that successfully navigate regulatory challenges are far less likely to be subject to costly punitive, legal, and remedial enforcement. Identifying and understanding the compliance linkages between banks, exchanges, and consumers will be a protracted process, but remains important to crypto industry growth. As evidenced in the past two years, governments are not backing down on regulation, but instead continue to update and develop more comprehensive financial crimes regulations. In this span, FinCEN finalized their rules under the Bank Secrecy Act (BSA) requiring the identification and verification of UBOs and parameters for enhanced customer due diligence and issued Geographic Targeting Orders requ Continue reading >>

Cryptocurrencies And The Fight Against Money Laundering

Cryptocurrencies And The Fight Against Money Laundering

As the global use of cryptocurrencies continues to gather momentum, what are the potential risks and implications for compliance professionals and how can they stay a step ahead of money launderers? Criminal networks are adept at exploiting loopholes in regulations, making the risk of cryptocurrency-related reputational fall-out very real. Regulation of cryptocurrencies is still uncertain, but thats no excuse for KYC and AML failures if your business inadvertently deals with money launderers. RegTech solutions provide the tools needed to establish and verify customer and counterparty identity with greater speed and efficiency. Bitcoin, arguably the most widely recognized cryptocurrency, is fast approaching a decade of existence. In January 2009, the first version of Bitcoin was released and later that month the first ever Bitcoin transaction was concluded. Its also worth remembering that cryptocurrencies are decentralized, meaning that they are not backed or regulated by a specific government or central regulator. Virtual currencies are traded on peer-to-peer networks that criss-cross the globe and rely on market demand to determine their relative prices. These prices therefore rely heavily on perception at any given time. Do cryptocurrencies help money launderers? In the world of money laundering , there are a number of requirements common to all players, with convenience and anonymity possibly the two most important of these. Since both are offered by often anonymous digital currencies, it is unsurprising that these digital currencies hold a natural appeal for money launderers. Many people have heard of Bitcoin, but the list of perhaps lesser-known cryptocurrencies is extensive Litecoin , Dash , Ethereum , Stellar the list goes on. Some of these currencies, such as M Continue reading >>

Pr: Dashub Selects Clears For Kyc And Aml Compliance

Pr: Dashub Selects Clears For Kyc And Aml Compliance

PR: DASHUB Selects Clears for KYC and AML Compliance This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release. -DASHUB Inc., signs commercial agreement with Clears as its exclusive KYC/AML user -Clears provides DASHUBs users with international compliance, data privacy, security, and frictionless interaction using the blockchain- NYC-New York- May 03rd 2018 Clears, a revolutionary data-less Know Your Customer [KYC] service, powered by the Ethereum blockchain, and DASHUB, an online automotive marketplace , inked a commercial agreement for the implementation of Clears solution to verify compliance regulation of DASHUB users. Clears will be the exclusive provider of KYC and AML verification for investors and users on DASHUBs token sale for AXT and their planned future platform called the Automotive eXchange Platform (AXP).. Clears system assures compliance while protecting users personal data. Data given to Clears is encrypted, hashed and cold stored. Clears maintains an unparalleled integrity and security for its users and mitigates its partners liability in the case of audits. Compliance is a top priority at DASHUB. The automotive sales industry is a constant victim of fraud, and requires unique conditions to secure its marketing funnel. Partnering with Clears was an obvious choice for both user protection and their unique blockchain approach. said Max Kane President and CEO of DASHUB. KYCor Know Your Customeris a critical process for all financial companies dealing with international investors, shareholders and customers. Clea Continue reading >>

As U.s. Banks Debate Virtual Currency Engagement, Compliance And Risk Oversight Need To Adapt

As U.s. Banks Debate Virtual Currency Engagement, Compliance And Risk Oversight Need To Adapt

October 24, 2017 / 12:53 PM / 8 months ago As U.S. banks debate virtual currency engagement, compliance and risk oversight need to adapt NEW YORK (Thomson Reuters Regulatory Intelligence) - As debate intensifies among large U.S. firms over whether crypto-currencies like bitcoin are a passing fad or potential game-changer, recent enforcement actions suggest banks will need to adapt their compliance functions and processes if they plan to venture into this unchartered terrain. The image of United States President George Washington is seen on an engraving plate for a US one dollar bill at the Bureau of Engraving and Printing in Washington November 14, 2014. What has caught the attention of some legal experts is a recent action( here ) by the Commodity Futures Trading Commission against a bitcoin Ponzi scheme. The agency used its anti-fraud authority in bringing charges against the New York firm Gelfman Blueprint Inc., which according to the agency ran a pooled commodity fund that purportedly employed a high-frequency, algorithmic trading strategy. In reality, the strategy was fake, the purported performance reports were false, and the firms performance reports included statements that created the appearance of positive bitcoin trading gains. James McDonald, head of enforcement at the CFTC, said the defendants here preyed on customers interested in virtual currency, promising them the opportunity to invest in Bitcoin when in reality they only bought into the defendants Ponzi scheme. At a minimum, what the CFTC action, along with recent guidance from the Securities and Exchange Commission on how certain digital currency fund raising attempts initial coin offerings (ICOs) can be considered securities, suggests is that both agencies are monitoring these markets closely. Shoul Continue reading >>

Bitaml | Bitcoin Compliance | Bitcoin Aml | Bitcoin Atm Regulation

Bitaml | Bitcoin Compliance | Bitcoin Aml | Bitcoin Atm Regulation

BitAML experts will answer your regulatory compliance questions, make recommendations, and gather the necessary information begin crafting your AML program. BitAML experts will begin preparing your AML program. Along the way, well update you on our progress. Upon completion, well will walk through your AML program together, answer your questions, and help integrate compliance into day-to-day business operations. Using BitAMLs revolutionary ComplyFit program, youll be able to monitor compliance with your AML program 24/7/365. Our experts are with you, every step of the way. Whether its a situational question or strategy discussion, BitAML experts are standing by and ready to support you. The best team of industry experts skilled in strategy, planning analysis Duis dolor est, tincidunt vel enim sit amet, venenatis euismod neque Duis dolor est, tincidunt vel enim sit amet, venenatis. Duis dolor est, tincidunt vel enim sit amet, venenatis euismod neque Duis dolor est, tincidunt vel enim sit amet, venenatis. Duis dolor est, tincidunt vel enim sit amet, venenatis euismod neque Duis dolor est, tincidunt vel enim sit amet, venenatis. Regulatory compliance means peace of mind. Continue reading >>

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