Crypto industry on defensive as Ukraine crisis spotlights Russia sanctions compliance

News Desk 2022-03-10 10:03

A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken October 19, 2021. REUTERS/Edgar Su/

March 10 (Reuters) – Cryptocurrency evangelists are on the defensive amid warnings from US and European lawmakers that digital asset companies are not up to the task of complying with Western sanctions imposed on Russia following the country’s invasion of Ukraine.

The criticism has seen the crypto industry scrambling to regain control of the narrative, with many executives frustrated that the compliance regimes in place at leading exchanges, such as Coinbase and Binance, are being called into question.

At the same time, the increased scrutiny could be a pivotal moment for the sector to prove that it is not the “Wild West” of finance that regulators have painted it to be.

“It’s an opportunity for the industry to show that it is mature and that it knows how to properly manage risk,” said Matt Homer, an executive in residence at venture capital firm Nyca Partners.

The crypto community was largely caught flat-footed as the United States and its allies moved to impose sweeping sanctions against Russia’s banks, elites and other state firms.

Unlike other payment companies, crypto exchanges have rejected calls to cut off all Russian users, saying that goes against the industry’s libertarian values, sparking concerns among European officials and US lawmakers that digital assets could be used to circumvent the sanctions. read more

US Senator Elizabeth Warren has alleged that many crypto exchanges and wallets have lax compliance controls and are not collecting data on customers’ identities. read more

But executives at exchanges including Kraken, FTX, Coinbase and Gemini, as well as industry trade groups, say that’s not the case.

“This rhetoric is inaccurate,” said Elena Hughes, chief compliance officer at Gemini, adding that the company screens clients like any other financial firm. “We’ve dedicated a lot of resources to ensure that we have the right controls (and) that we’ve gotten things right.”

On Monday, Coinbase issued a lengthy blog detailing its controls, noting that it had blocked more than 25,000 addresses connected with Russian individuals or entities believed to be engaging in illegal activity.

FTX US, a Chicago-based crypto exchange, said it operates multiple regulated licenses and continues to “rigorously implement and comply” with all sanctions.

“For the most part, most of these companies have very robust systems in place already, and it’s very easy for them to comply with sanctions, just like any other financial institution,” said Kristin Smith, executive director of the Blockchain Association.

‘EXISTENTIAL’ RISK

From its inception, the cryptocurrency community touted digital assets as vehicles for anonymous transactions, and a slew of federal enforcement actions for fraud, money laundering and unregistered coin offerings has only reinforced the perception that crypto companies are prone to blurting the law.

But as the value of all cryptocurrencies surged past $3 trillion last year and more Americans invest in the asset class, the industry has been trying to shed its unsavory image by burning its overall compliance credentials. read more

While lawmakers worry about crypto sanctions evasion, Biden administration officials have said they do not believe digital assets could be used to circumvent all the curbs.

The US Treasury Department has reached out to several crypto exchanges and trade groups to explain its expectations for sanctions compliance and to create a line of communication in case of questions, a person familiar with the matter said.

This person, who spoke on condition of anonymity, added that officials were impressed by the majority of firms’ compliance controls.

For many exchanges, the risk of not being in compliance with the rules as they stand is “existential,” said Charles Delingpole, chief executive officer at ComplyAdvantage, an anti-money laundering technology company that works with several prominent crypto firms, including Binance and Gemini.

“Not only in terms of being fined (and) having dollar clearing access removed,” he said. “If you’re laundering money, which is the flip side of this, there’s been huge backlash from the public for companies seen to be facilitating illegal flows of money.”

Reporting by Hannah Lang in Washington; Editing by Michelle Price and Paul Simao

Our Standards: The Thomson Reuters Trust Principles.

Sources

1/ https://Google.com/

2/ https://www.reuters.com/technology/crypto-industry-defensive-ukraine-crisis-spotlights-russia-sanctions-compliance-2022-03-10/

The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn’t remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don’t have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. “Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices”, said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

Original Source