Earlier reports that got spread across media stating that Trump Department of Justice (DOJ) sues BTC-e Exchange for a $100 million civil suit. It says that they have also filed a lawsuit against its Russian national Alexander Vinnik.
Crypto Industry v/s United States
To note, the lawsuit claims that BTC-e Exchange offered various financial services to the residents of the United States without complying to country’s regulatory frameworks. Following this case and many others in a similar nature, companies are keeping their affairs away from US citizens.
Despite having high profile customers, investors, the United State isn’t entertaining businesses to offer crypto services to those living in the US. Although the country demands to have proper compliance with the regulations, the sources claim that the cost and hassle of dealing with regulators are way higher than the profits from their business.
While many believe the crypto and blockchain industry bring innovation and economic expansion, the United States is shutting the doors for this industry, leaving no room for innovation. However, talking about the similar reference, Binance CEO, CZ stated that “they prompt their service for US customers due to unclear regulations even though the country is famously known for Silicon Valley.”
Considering US’s stern action against crypto industry, many new and existing companies are mainly focusing on those countries that are encouraging crypto adoption. To name a few, Switzerland, Australia, Malta, Singapore, and other such countries are becoming the hub for companies with crypto services.
It’s worth to note that, Facebook, one of the top social media giants is heading towards Geneva, Switzerland to set up headquarter for its Libra Association and all significant aspects concerning its new digital currency, Libra.
Further, the Senate Committee of the United States itself is organizing the open session on July 31st to examine the regulatory framework for cryptocurrency and Blockchain technology. However, the result of the hearing is a matter of time, stay tuned with TronWeekly to get updates on this.
As for now, BTC-e exchange and its operator got caught on offering illicit bitcoin dealing alongside declining to avail FinCEN registration as a Money Service Business. The report further adds that BTC-e Exchange fails to serve Anti-Money Laundering (AML) procedures under the BSA (Bank Secrecy Act) and fails to report dubious activities.
Accordingly, FinCEN has penalized BTC-e exchange with $88.6 million fine and $12 million against its operator Vinnik. The complaint reads that;
“At no point in time did BTC-e have any AML policies or procedures, let alone an effective program for detecting and preventing suspicious transactions. To the contrary, BTC-e’s lax policies encouraged persons engaged in criminal activity to use its services, and BTC-e became the virtual currency exchange of choice for criminals looking to launder their illegal proceeds.”
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