New York regulators announced on Jan. 4 that cryptocurrency exchange Coinbase will pay a $50-million fine and invest a further $50 million in its compliance program, following a settlement with the New York State Department of Financial Services. The fine was issued after regulators found the company had allowed customers to open accounts without conducting sufficient background checks, potentially violating anti-money-laundering laws. The company's failure to properly identify customers and monitor their activity for suspicious activity was initially identified during a routine examination in 2020, but regulator's determined that the company's problems persisted, leading to a formal investigation in 2021. …

The United Kingdom’s National Crime Agency (NCA) is taking measures to increase its focus on cryptocurrency crimes and combat criminals. NCA’s cyber-focused command, the National Cyber Crime Unit (NCCU), is launching a dedicated cryptocurrency unit to investigate U.K. cyber incidents involving the use of cryptocurrencies like Bitcoin (BTC). Called “NCCU Crypto Cell,” the crypto-focused unit will initially contain five officers dedicated to "proactive cryptocurrency remit." “This is a really exciting opportunity which involves working in a team at the forefront of protecting the U.K. from cyber crime,” NCA infrastructure investigations director Chris Lewis-Evans told Cointelegraph. He added: “Cryptocurrency and virtual …

The Israeli Securities Authority (ISA) proposes a framework for regulating digital assets as an increasing number of Israeli investors are exposed to digital assets, and over 150 companies operate in Israel, according to the regulator. The regulator released a proposal in January 2023, outlining its purpose to achieve the “double value” of responding to the risks associated with investing in digital assets alongside giving the authority means to adopt a regulation. The authority has established multiple committees over the past several years to examine and regulate the issuance of cryptocurrencies and promote the development of digital markets in Israel. The …

As a part of its reform of crypto regulation, Indonesia will create a crypto exchange in 2023, according to reports. The platform is planned to be launched prior to a shift of regulatory power from commodities to securities authority. On Jan. 4, the head of the Commodity Futures Trading Regulatory Agency of Indonesia (Bappebti), Didid Noordiatmoko, stated that a crypto exchange should be set up this year. The move comes as a part of broader financial reform launched in December 2022. In accordance with the reform, in the next two years, the crypto oversight will be taken from Bappebti, a …

Cryptocurrencies will be a hot topic as the United States Congress resumes and the battle lines are drawn between lawmakers for and against the fledgling financial industry. But the Blockchain Association reports that more than 100 crypto industry advocates are fighting to help strike the right balance between protection and innovation. The 118th U.S. Congress convened in Washington D.C. on Jan. 3. It’s scheduled to continue until Jan. 3, 2025, during the final two years of President Joe Biden’s first term. The crypto industry is currently in the crosshairs following several high-profile meltdowns last year, the largest being the collapse …

The United States Attorney’s Office for the Southern District of New York (SDNY) has formed an FTX Task Force to “trace and recover” missing customer funds, as well as handle investigations and prosecutions related to the exchange’s collapse. The announcement came via a statement from U.S. Attorney Damian Williams who is the federal prosecutor in the FTX case involving founder Sam Bankman-Fried. Charges from the Manhattan attorney’s office against Bankman-Fried include wire and securities fraud, conspiracy to commit wire and securities fraud, money laundering and violation of campaign finance laws. “The Southern District of New York is working around the …

United States federal bank regulatory agencies started off the new year with a statement on crypto assets that looked back at the troubles of the crypto sector in 2022. The Federal Reserve, Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) released a joint statement Jan. 3 on past problems and their efforts to maintain sound banking practices in spite of those challenges. “It is important that risks related to the crypto-asset sector that cannot be mitigated or controlled do not migrate to the banking system,” the agencies stated. They identified eight specific risks …

The Bahamas will have legal representation in the unfolding FTX case. The Caribbean nation chose Brown Rudnick as counsel “in certain matters of engagement related to the collapse of FTX Digital Markets Ltd.,” alongside Bahamian lawyers and other experts, according to a statement released by the law firm. FTX Digital Markets is headquartered in the Bahamas, and the top management of the company lived in that country. Cases against the members of the management team are now being heard in the United States after former CEO Sam Bankman-Fried’s extradition from the Bahamas. Brown Rudnick has been working for the Bahamas …

Former FTX chief executive officer Sam Bankman-Fried has pled not guilty to all charges he’s facing including wire fraud, securities fraud, and violations of campaign finance laws. Multiple observers in the United States District Court in the Southern District of New York on Jan. 3 reported that Bankman-Fried’s attorneys had entered a not guilty plea on SBF’s behalf in his first court appearance since December. Bankman-Fried faces eight criminal counts which could result in 115 years in jail should he be convicted. Assistant U.S. Attorney Danielle Sassoon, one of the prosecutors in the case against the former FTX executive, reportedly …

When it comes to the “crypto” part of cryptocurrencies, David Chaum’s work predates the crypto ecosystem. His efforts as a renowned cryptographer date back to 1989, long before Bitcoin (BTC) was a thing. Chaum developed the protocols that act as the basis of DigiCash — the world’s first digital currency secured by cryptography. As the CEO of privacy-focused network developer Elixxir, David Chaum is working with the Swiss central bank to develop a central bank digital currency (CBDC) that could also attract the crypto ecosystem due to its privacy features. Named eCash 2.0, the new project aims to develop digital …

The legal team behind former FTX chief executive officer Sam Bankman-Fried has petitioned a court to redact certain information on individuals acting as sureties for his $250-million bond, citing threats made against his family. In a letter dated Jan. 3 filed to Judge Lewis Kaplan for the United States District Court in the Southern District of New York, Bankman-Fried’s legal team requested the court order “names and other identifying information” of two bail sureties not be disclosed to the public and redacted from bonds once they were signed on Jan. 5. Mark Cohen of the law firm Cohen & Gresser …

Business intelligence firm MicroStrategy made headlines ahead of New Year's Eve as the sale of a portion of its Bitcoin (BTC) holdings drew the attention of industry experts and critics. A regulatory filing with the United States Securities and Exchange Commission (SEC) on Dec. 28 detailed the first time the firm sold some of its BTC since its high-profile adoption of the preeminent cryptocurrency as its primary treasury asset. MicroStrategy made waves in the industry in 2021 as it began amassing significant holdings of BTC, with founder Michael Saylor touting the asset as a superior store of value to fiat …