Home Coins Bitcoin (BTC) BitMEX charges send ‘a message’ to global exchanges: Crypto Mom

BitMEX charges send ‘a message’ to global exchanges: Crypto Mom

United States Securities and Exchange Commissioner Hester Peirce — better known as “Crypto Mom” — believes the recent action against BitMEX may be a wake up call for crypto firms. 

In an interview with “Unchained Podcast” on Oct. 13, Peirce told host Laura Shin that the recent charges laid against BitMEX by the U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) has put the international crypto industry on notice about U.S. anti-money laundering (AML) and know your customer (KYC) regulations.

“I think that the message has been coming to the industry fairly loud and clear on the AML/KYC front, and I’m sure it will continue,” said Pierce.

“It’s definitely sending a message to the crypto world that when there are U.S. users of a product or a service, there’s going to be enforcement of U.S. laws.”

On Oct.1, the CFTC filed a civil enforcement action against BitMEX and three of its executives for violating AML regulations. In addition, the DOJ filed criminal charges against four executives, including founder Arthur Hayes, for violating the Bank Secrecy Act. Hayes and two of his colleagues remain at large as of this writing, while BitMEX’s former chief technical officer, Samuel Reed, is out on bail.

Pierce also discussed the SEC’s apparent resistance to a Bitcoin exchange-traded fund (ETF). Such a product would offer a regulated means for institutional investors to access crypto without the risk of holding the underlying assets.

Though the Bermuda Stock Exchange announced it has approved a Bitcoin ETF in September, that’s outside the SEC’s jurisdiction. The Winklevoss twins, Wilshire Phoenix, and NYSE broker Arca have submitted proposals for Bitcoin ETFs with the SEC, and the commission has consistently rejected all of them over fears of market manipulation.

However, Crypto Mom believes an ETF should be “judged on its own merits” by the regulatory body. Bitcoin ETFs, she said, hold a lot of interest among investors and could be an easy way for people to get exposure to the cryptocurrency.

She criticized the commission’s resistance to a Bitcoin ETF as unfair to investors:

“In the past I think [the SEC has] taken an approach that is a merit regulation approach and is saying ‘we don’t think that investors can make wise decisions for themselves so we’re just going to cut this product off from them altogether.’ It just doesn’t make any sense to me.”

Peirce started her second term at the SEC in August and will remain at the commission until 2025.

First published here

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
472FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,550FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.19
GBP
1.33
CHF
1.10
NOK
0.11
JPY
0.01
CAD
0.77
AUD
0.74

Most Popular

Chinese police seized crypto assets worth $4.2B today from PlusToken Ponzi

The PlusToken controversy, which has led to the arrest of 109 individuals so far, has also reportedly resulted in a titanic seizure of crypto...

Bloomberg lists 5 bullish trends for Bitcoin price despite ‘Thanksgiving crash’

Bitcoin (BTC) continues to convert some of its harshest traditional critics from mainstream finance as Bloomberg admits that this bull run is nothing...

3 Years In The Blink Of An Eye: The Ontology Story So Far | by The Ontology Team | OntologyNetwork | Nov, 2020

A recap of everything that has happened so far…and of what’s to come.3 years can feel like an eternity at a time of relative...
bitcoin
Bitcoin (BTC) $ 17,015.88
ethereum
Ethereum (ETH) $ 513.52
ripple
XRP (XRP) $ 0.541911
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 265.75
bitcoin-cash-sv
Bitcoin SV (BSV) $ 161.62
litecoin
Litecoin (LTC) $ 69.10
eos
EOS (EOS) $ 2.87
binancecoin
Binance Coin (BNB) $ 28.09
okb
OKB (OKB) $ 5.23
tezos
Tezos (XTZ) $ 2.27
leo-token
LEO Token (LEO) $ 1.33
cardano
Cardano (ADA) $ 0.137318
monero
Monero (XMR) $ 116.22
stellar
Stellar (XLM) $ 0.191215
chainlink
Chainlink (LINK) $ 12.37
huobi-token
Huobi Token (HT) $ 4.05
tron
TRON (TRX) $ 0.028901
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 90.64
neo
NEO (NEO) $ 16.90
iota
IOTA (MIOTA) $ 0.306199
nem
NEM (XEM) $ 0.166317
zcash
Zcash (ZEC) $ 68.52
maker
Maker (MKR) $ 521.44
paxos-standard
Paxos Standard (PAX) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 6.18
vechain
VeChain (VET) $ 0.014336
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX Token (FTT) $ 3.92
kucoin-shares
KuCoin Shares (KCS) $ 0.795611
waves
Waves (WAVES) $ 6.71