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Two Bitcoin platforms for trading pay millions to close investigations

Cryptopolitan


TL;DR Breakdown

• BitMEX had to pay $100 million to avoid SEC regulations.
• The SEC president wants to expand the federal rules against Bitcoin platforms.

The cryptocurrency market has been very busy and more in North America. A few days ago, some Bitcoin platforms paid for the investigations that would lead to regulation to be closed.

Earlier in the week, the crypto platform BitMEX had to pay about 100 million dollars to the CFTC to avoid regulations. This market commission is very similar to the SEC, only that it focuses on BTC futures contracts.

Last year, BitMEX was fined by the commission due to violations of federal anti-money laundering regulations. The creators of the company have a lawsuit for money laundering using cryptocurrencies.

The CFTC attacks the Bitcoin platforms

Crypto exchange BitMEX has not released details on the lawsuit yet but has announced that it will improve its service. The platform wants to prevent regulatory agencies from accessing its system so it cannot be controlled.

Since its creation until 2014, the BitMEX platform allowed account registration by email without identity verification. In this period, the cryptocurrency website traded about $209 million linked to money laundering. According to the FinCEN agency, BitMEX financed drugged trafficking, terrorism, and other crimes using cryptos.

Another of the trading platforms involved in controversy is Poloniex LLC, which agreed to cover about $10 million to avoid regulations. By the SEC order, the platform has violated several rules for protecting the user by not leaving records of their transactions.

The investigation against Poloniex shows that the platform allowed crypto transactions between unregistered users. This investigation order was carried out between 2017 and 2019, where an ascent of crypto operations on the web is also shown.

Poloniex avoids Securities and Exchange Commission regulations

The Securities and Exchange Commission of the United States clarifies that the two Bitcoin platforms have violated federal laws and will be sanctioned. The SEC also indicates that it will seek to expand the rules against cryptocurrencies shortly to give investors security. The SEC president adds that August has been strong due to the regulations applied in the Bitcoin platforms.

Gary Gensler, chairman commission, also said that crypto platforms should register with the organization. Even these Bitcoin platforms should check which crypto that the commission will accept are. However, everything indicates that Gensler’s statements are to intimidate crypto exchanges.

At the beginning of the month, the commission also sanctioned the DeFi system creators under the name of Money Market. The crypto platform had to pay US$30 million because it did not register with the commission and used two illegal tokens.



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