Autor Cointelegraph By Turner Wright

OCC issues order against Anchorage Digital over AML compliance

The United States Office of the Comptroller of the Currency, or OCC, has said it intends to pursue cease and desist proceedings against cryptocurrency custody bank Anchorage Digital for violating certain anti-money laundering requirements.In a Thursday announcement, the OCC said it issued a consent order against Anchorage Digital based on its “failure to adopt and implement a compliance program” in accordance with required Bank Secrecy Act, or BSA, and AML standards. The government bureau said such actions placed Anchorage Digital in violation of its operating agreement with the OCC, established in January 2021. “The OCC holds all nationally chartered banks to the same high standards, whether they engage in traditional or novel activities,” said Michael Hsu, acting comptroller of the currency. “When institutions fall short, we will take action and hold them accountable to ensure compliance with federal laws and regulations.”Anchorage neither admits nor denies the comptroller’s findings, but the order reported the bank has “begun corrective action and is committed to taking all necessary and appropriate steps to remedy the deficiencies.” A consent order, by definition, implies two parties — in this case, Anchorage and the OCC — have reached an agreement in principle on moving forward.In a statement to Cointelegraph, Anchorage Digital said it had “already been working to strengthen the areas identified [by the OCC] and will continue to bolster these areas, reinforcing a new, digital asset standard for internal BSA/AML controls and procedures.” The bank hinted that the OCC’s actions might help establish a regulatory precedent that could encourage other firms in the space to set up federally regulated digital asset banks.According to the OCC, there is a 15-day deadline to establish a committee for “specific corrective actions” to ensure the bank is in compliance with the AML and BSA requirements, and issue progress reports on the plan as it is executed. In addition, the government bureau ordered Anchorage make a BSA officer available to ensure compliance.Related: OCC Comptroller calls for federal collaboration with crypto intermediariesAnchorage was the first crypto firm in the United States to receive a national bank charter from the OCC in January 2021. Since his departure from the government bureau, former Acting Comptroller of the Currency Brian Brooks was briefly the CEO of Binance.US and now the CEO of crypto mining firm Bitfury.

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US lawmakers sound alarm to EPA over environment concerns of crypto mining

United States House of Representatives member Jared Huffman and 12 other lawmakers have requested the Environmental Protection Agency, or EPA, assess crypto mining firms potentially violating environmental statutes.In a letter addressed to EPA administrator Michael Regan on Wednesday, Huffman said he and other Democratic House members had “serious concerns” around crypto firms in the United States reportedly contributing to greenhouse gas emissions and not operating in accordance with either the Clean Air Act or the Clean Water Act. The lawmakers identified efforts to “re-open closed gas and coal facilities” as a means to produce energy for crypto mining operations as a particular area of concern, as well as “energy-inefficient” proof-of-work mining for Bitcoin (BTC), Ether (ETH), Monero (XMR), and Zcash (ZEC).“Cryptocurrency mining is poisoning our communities,” said the letter. “The rapidly expanding cryptocurrency industry needs to be held accountable to ensure it operates in a sustainable and just manner to protect communities.”@RepHuffman is right: @EPA must address pollution caused by digital currencies like #Bitcoin. #ChangeTheCode #CleanUpBitcoin https://t.co/3WVBQxNuXQ— EWG (@ewg) April 21, 2022In addition to air and water pollution as a result of energy production, the U.S. lawmakers pointed to “large amounts of electronic waste” due to crypto miners becoming obsolete, and “significant noise pollution” reported around communities with mining operations in New York, Tennessee and Georgia. House members including Representative Brad Sherman — who has previously called for a ban on cryptocurrencies in the United States — and progressive lawmaker Alexandria Ocasio-Cortez signed the letter in support of action against mining firms. “We request that the EPA evaluate PoW mining facilities’ compliance with environmental statutes, such as the Clean Air Act and the Clean Water Act, and engage with the communities when reviewing permits,” said the letter to Regan. “Further, we ask that the EPA investigate and address any harm these existing PoW facilities are causing communities including, but not limited to, ensuring that electronic waste is responsibly disposed of, and noise pollution is abated.”“As cryptocurrency continues to gain popularity and demand more mining, we must ensure communities are not left with the toxic burdens associated with this technology.”Related: Are we misguided about Bitcoin mining’s environmental impacts? Slush Pool CMO Kristian Csepcsar explainsThe energy requirements for cryptocurrency miners continue to be controversial among policymakers in the U.S. and many other countries. Bloomberg reported in March that oil and gas giant ExxonMobil had been using excess gas from oil wells in North Dakota to run BTC miners as part of a pilot program started in January 2021. In addition, a New York state supreme court judge recently dismissed a petition requesting mining firm Greenidge Generation halt operations, saying organizations had failed to prove residents would suffer from an “environmental injury” with the company expanding.

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The Bahamian government hopes to allow residents to pay taxes with digital assets in 2022

Residents of the archipelago nation the Bahamas may soon be able to ues digital assets including the world’s first central bank digital currency, or CBDC, to pay for taxes.In a white paper released on Wednesday on the future of digital assets, the Bahamas’ Office of the Prime Minister said the government will begin to “enable payment of taxes using digital assets” by working with the country’s central bank as well as the private sector. In addition, the government plans to work on giving citizens access to crypto with the Bahamian dollar and encourage greater use of the country’s CBDC — the Sand Dollar.“The Government will endeavour to ensure that digital assets are not used for the evasion of taxes or sanctions, and will seek to ensure compliance with all applicable Tax information exchange agreements (TIEA) and domestic laws and agreed OECD standards,” said the white paper.In an effort to establish consistency across the branches of government, the Bahamas said it will form a Digital Asset Policy Committee as well as a Digital Advisory Panel, or DAP. The former will be chaired by the Prime Minister — Philip Davis at the time of publication — with members including the Financial Secretary, the Central Bank of The Bahamas governor, the executive director of the country’s securities commission, and the DAP chair. The advisory panel will consist of experts from the digital asset space “to keep digital asset and related digital developments, emerging trends, and associated risks constantly under review.”“We have a vision to transform The Bahamas into the leading digital assets hub in the Caribbean and a global leader in the progressive regulation of businesses in this profoundly innovative space,” said Davis, according to Eyewitness News Bahamas. “While we recognize the extraordinary opportunities afforded by digital assets, we also recognize the risks, and thus we emphasize the importance of effective regulation.”FOLLOWING- Prime Minister Philip Davis today tabled a White Paper in Parliament outlining “a vision and a framework to guide digital asset policy in The Bahamas” (1/2). pic.twitter.com/Elun7BjkWT— Eyewitness News Bahamas (@ewnewsbahamas) April 20, 2022Related: Bahamas central bank prepares national Sand Dollar push for summerIn October 2020, the Bahamas became the first jurisdiction to fully roll out a CBDC, called the Sand Dollar. The digital currency was aimed at driving greater financial inclusion within the archipelago nation of more than 700 islands, roughly 30 of which are inhabited. Major crypto exchange FTX has expanded to the country by registering a Bahamian subsidiary in September 2021.

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Coinbase is planning to purchase crypto exchange BtcTurk in $3.2B deal: Report

Major United States-based cryptocurrency exchange Coinbase is reportedly planning to purchase BtcTurk for $3.2 billion.According to Turkish tech media outlet Webrazzi citing a Thursday report from Mergermarket, the two exchanges negotiated a price based on the market behavior of the Turkish lira and Bitcoin (BTC), arriving at roughly $3.2 billion. One or both of the two firms have reportedly already signed a term sheet.The potential acquisition would follow Coinbase CEO Brian Armstrong announcing plans to expand to every country in which the exchange can legally operate. Cointelegraph reported in March that Coinbase was preparing to purchase 2TM, the parent company of Latin America-based crypto brokerage firm Mercado Bitcoin.Coinbase is also currently hiring a country director for its operations in Turkey. According to the job posting, part of the director’s responsibilities include accelerating the exchange’s “strategic partnerships” in the country. Binance announced on April 14 that it had launched a customer service center in Turkey in an effort to end fraud cases involving crypto.Related: Crypto and NFTs meet regulation as Turkey takes on the digital futureLaunched in 2013, BtcTurk is one of the largest and oldest crypto exchanges in Turkey, sharing the market with its competitor Paribu and others. According to data from CoinMarketCap, the firm has had more than $196 million in trading volume over the last 24 hours. Cointelegraph reached out to Coinbase and BtcTurk, but did not receive a response at the time of publication.

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Simplify files with SEC for Bitcoin Strategy Risk-Managed Income ETF

Asset manager Simplify has filed a registration statement with the United States Securities and Exchange Commission to list shares of an exchange-traded fund linked to Bitcoin futures, Treasury securities, and options.In a Wednesday filing, Simplify applied with the SEC for an investment vehicle based on a Bitcoin (BTC) futures strategy, an income strategy, and an option overlay strategy. The Bitcoin Strategy Risk-Managed Income ETF, to be listed under the ticker MAXI on Nasdaq, is a series of exchange-traded funds from the asset management company. The fund will indirectly invest in BTC using crypto futures and, as part of its income strategy, hold short-term U.S. Treasury securities and ETFs that invest in Treasury securities. For its option overlay strategy, Simplify said it would purchase “exchange-traded protective put options” and write “exchange-traded call options on Bitcoin futures and/or a Bitcoin related ETF or ETFs.”“The core option overlay is a strategic exposure meant to partially hedge against Bitcoin futures declines and express convictions about price run ups or about a specific Bitcoin-linked ETF’s price movement,” said the filing. “If the price of Bitcoin goes up, the Fund’s returns may underperform Bitcoin because the adviser will buy back the written call options at a likely-higher price. If the price of Bitcoin goes down, the Fund’s returns may fall less than Bitcoin because the adviser will sell the put options at a likely-higher price or exercise the put options.”Simplify with a new filing for a “Bitcoin Strategy Risk-Managed Income ETF” with the ticker $MAXI, it will hold bitcoin futures along with income generating bonds while also selling puts and purchasing calls on bitcoin ETFs. pic.twitter.com/QdVxLRyI2w— Eric Balchunas (@EricBalchunas) April 20, 2022The SEC has approved many ETF applications linked to BTC futures from financial firms and asset management companies in the last year following chair Gary Gensler hinting he would be more open to accepting ETFs based on crypto futures rather than through direct exposure. In January, Simplify also filed to list shares of an investment vehicle tracking the performance of certain web3 firms, the Simplify Volt Web3 ETF. Related: SEC could approve spot Bitcoin ETFs as early as 2023 — Bloomberg analystsIn October 2021, ProShares and Valkyrie became two of the first firms to launch exchange-traded funds linked to BTC futures in the United States. However, the SEC has rejected all spot Bitcoin ETF applications as of the time of publication. Grayscale is currently awaiting a decision from the regulatory body on whether an application to convert its Bitcoin Trust into a spot BTC ETF for a public listing will be accepted.

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