Cryptocurrency

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The crypto industry has been forced to face various regulatory bodies from around the world. In the latest crypto update, the Cryptocurrency derivatives exchange known as BitMEX disclosed that it had previously violated BSA in the United States, which was now old news from 2020. The company made it clear that they anticipate no further fines on the case and requested an expedited review of the issue. The crypto community anticipates the DOJ’s response as it will influence how the whole process plays out.&nbsp; 
<h2 id="b-charges-against-bitmex-b">Charges Against BitMEX</h2> 
BitMEX has faced a storm of legal issues for the BitMEX AML violation. The founders of BitMEX, Arthur Hayes and Benjamin Delo, settled to pay $10 million each in criminal fines for BitMEX’s violations of the Bank Secrecy Act (BSA). Following that event, BitMEX anticipates that no fine will be paid again to the US Department of Justice (DOJ). The basis for making such claims cannot be confirmed as the case was not fully dismissed in any formal way.&nbsp; 
<h2 id="b-acceptance-and-strategic-response-b">Acceptance and Strategic Response</h2> 
BitMEX published a statement accepting the BSA charges. A crypto update captures the statement as thus: 
“We have accepted the BSA charge, will seek an expedited sentencing hearing, and argue that no further fine should be imposed, given the substantial amounts already paid by our founders under the BSA charges brought against them and under our no admission/no denial settlements with the CFTC and FinCEN in 2021.” 
Now that the company has called this old news, questions have been raised among experts on where the company stands now.&nbsp; 
<h2 id="b-compliance-assurance-after-bitmex-aml-violation-b">Compliance Assurance After BitMEX AML Violation&nbsp;</h2> 
BitMEX has taken steps to ensure full compliance with the frameworks that are laid out. The attempts include external audits from reputable bodies, <a href="https://www.swift.com/your-needs/financial-crime-cyber-security/know-your-customer-kyc/meaning-kyc#:~:text=illicit%20criminal%20activities.-,Know%20Your%20Customer%20(KYC)%20standards%20are%20designed%20to%20protect%20financial,of%20funds%20is%20legitimate%3B%20and" rel="nofollow noopener" target="_blank">Know Your Customer (KYC) measures</a> and AML programs. The measures taken by BitMEX are expected to bring about operational integrity and stability.&nbsp; 
“Needless to say, this charge has no impact on our business operations,” BitMEX remarked in a crypto update, showing its commitment to upholding regulatory compliance amidst legal challenges. 
This case reflects BitMEX’s strategic focus on addressing the previous BitMEX AML violations. The attempts made by BitMEX are expected to offer it a solid place in the industry again.&nbsp; 
<figure id="attachment_23577" aria-describedby="caption-attachment-23577" style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" loading="lazy" decoding="async" class="size-large wp-image-23577" src="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/07/shutterstock_1382563700-2-1-scaled-gID_6-1024x576.png" alt="BitMEX AML Violation" width="1024" height="576" title="Crypto Regulation and BitMEX AML Violation: BitMEX Expects ‘No Further Fines’ for ‘Old’ AML Violation 33">
 <figcaption id="caption-attachment-23577" class="wp-caption-text">
 BitMEX AML Violation
 </figcaption>
</figure> 
<h3 id="b-founders-response-and-compliance-improvements-b">Founders’ Response and Compliance Improvements</h3> 
BitMEX’s founders, Arthur Hayes and Benjamin Delo, have already paid substantial penalties for their involvement in the “BitMEX AML violation.” They pleaded guilty to charges and settled fines in 2022, amounting to $10 million each. 
<h3 id="b-legal-consequences-and-operational-impact-b">Legal Consequences and Operational Impact</h3> 
<a href="https://www.theblock.co/post/304656/bitmex-pleads-guilty-to-violating-the-bank-secrecy-act-in-anti-money-laundering-case" rel="nofollow noopener" target="_blank">Hayes and Delo agreed</a> to “willfully failing to establish, implement and maintain an Anti-Money Laundering program” at BitMEX, which led to severe legal issues. Experts suggest that these issues have been faced by Bitcoin (BTC) and Ethereum (ETH) platforms. Regardless of these challenges, BitMEX has implemented strict processes and guidelines that ensure that all U.S citizens are safe on the platform.&nbsp; 
<h2 id="b-future-outlook-and-regulatory-compliance-b">Future Outlook and Regulatory Compliance</h2> 
This BitMEX AML violation issue goes beyond just the company. The case has the potential to influence how the public outlook on cryptic coins like Bitcoin (BTC) and Ethereum (ETH) may suffer from the effects of such violations. BitMEX has stated that it expects no further fines from the DOJ as they have put in place thorough KYC procedures and AML programs that prevent any foul play on the business operations.&nbsp; 
<h2 id="b-legal-proceedings-and-sentencing-b">Legal Proceedings and Sentencing</h2> 
Delo and Hayes did not go untouched, as the legal proceedings led to Delo receiving 30 months of probation and Hayes facing two years of probation and six months of home detention. In the wind of these events, BitMEX manages to be cool-headed, focusing energy on maintaining complaints and creating more stable operational standards.&nbsp; 
<h2 id="b-conclusion-b">Conclusion</h2> 
BitMEX has acknowledged and strategically tackled the BitMEX AML violation. Although penalties were imposed, the company focuses on enhancing its compliance and moving forward with its business operations. Delo and Hayes, founders of BitMEX, have settled fines and faced the wrath of the law directly, and BitMEX is ready to enter a new era of transparency and accountability. The whole case had the potential to affect the broader crypto market, and coins like Bitcoin (BTC) and Ethereum (ETH) would have shared the consequences of BitMEX’s violation. Now that amends have been made and the focus on compliance intensifies, trust and confidence equally grow. Stay tuned to <a href="https://thebitjournal.com/">The BIT Journal</a> for current trends and happenings in the crypto industry.&nbsp; 
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Crypto Regulation and BitMEX AML Violation: BitMEX Expects ‘No Further Fines’ for ‘Old’ AML Violation

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The Bit Journal

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