{"id":79948,"date":"2024-05-30T16:24:42","date_gmt":"2024-05-30T20:24:42","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=79948"},"modified":"2024-05-30T16:24:45","modified_gmt":"2024-05-30T20:24:45","slug":"hidden-road-halts-clients-access-to-bybit-exchange","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/hidden-road-halts-clients-access-to-bybit-exchange\/","title":{"rendered":"Hidden Road Halts Client’s Access to ByBit Exchange"},"content":{"rendered":"\n

Hidden Road, a brokerage firm sponsored by Citadel, has formally restricted its clients' access to the ByBit exchange, citing KYC verification policies <\/a>and AML regulations.<\/p>\n\n\n\n

\"Hidden
Hidden Road Halts Client's Access to ByBit Exchange<\/figcaption><\/figure>\n\n\n\n

As reported by Bloomberg, a divergence in Know Your Customer (KYC) verification protocols and Anti-Money Laundering (AML) regulations between Hidden Road and ByBit led to the restriction on services.<\/p>\n\n\n\n

ByBit retorted that it would audit its brokerage division to verify the accurate implementation of regulatory policy.<\/p>\n\n\n\n

Anti-money laundering and Know Your Customer regulations have emerged as contentious issues in decentralized finance, dividing the cryptocurrency community.<\/p>\n\n\n\n

The academic journal Policy Design and Practice published research indicating that AML regulations had a minimal impact on illicit financial activities<\/a>.<\/p>\n\n\n\n

“Anti-money laundering policy intervention has less than 0.1 percent impact on criminal finances, compliance costs exceed recovered criminal funds more than a hundred times over, and banks, taxpayers and ordinary citizens are penalized more than criminal enterprises,” according to the study.<\/p>\n\n\n\n

In 2018, total global proceeds from illicit activity constituted a mere 3.6% of total GDP, according to academic research. This proportion has remained relatively constant across all surveyed years before 2018.<\/p>\n\n\n\n

\"\"
A graph depicting total global revenues for illicit finance. Source:\u00a0Policy Design and Practice Journal\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a><\/em><\/figcaption><\/figure>\n\n\n\n

Several initiatives, including Monero, Samurai Wallet, and Tornado Cash, have attempted to bypass these regulations by providing users with cryptocurrency aggregator and tumbler services.<\/p>\n\n\n\n

In April, federal authorities in the United States detained the developers of Samurai Wallet, Keonne Rodriguez, and William Lonergan Hill, on suspicion of violating money laundering laws.<\/p>\n\n\n\n

Both developers were charged by the U.S. Department of Justice (DOJ) with conspiring to launder money and operate an unauthorized money transmission service.<\/p>\n\n\n\n

The U.S. Treasury accused Tornado Cash of facilitating money laundering and moved to prosecute and arrest the founders of the popular mixing service well before the DOJ targeted Samurai Wallet.<\/p>\n\n\n\n

In 2022, the developers of Tornado Cash<\/a> were on the run from accusations by U.S. officials and their European allies that they had laundered $7 billion in digital assets. <\/p>\n\n\n\n

Following their involvement in the mixer protocol, developers of Tornado Cash, namely Roman Storm, Alexey Pertsev, and Roman Semenov, were all formally prosecuted and arrested.<\/p>\n\n\n\n

Because of his involvement in the project, Dutch authorities arrested and tried Pertsev, who is presently serving 64 months in prison.<\/p>\n","protected":false},"excerpt":{"rendered":"

Hidden Road, a brokerage firm sponsored by Citadel, has formally restricted its clients’ access to the ByBit exchange, citing KYC verification policies and AML regulations. As reported by Bloomberg, a divergence in Know Your Customer (KYC) verification protocols and Anti-Money Laundering (AML) regulations between Hidden Road and ByBit led to the restriction on services. ByBit […]<\/p>\n","protected":false},"author":12,"featured_media":79957,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32],"tags":[19783,5467,19782],"class_list":["post-79948","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchange-news","tag-bybit-exchange","tag-citadel","tag-hidden-road"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/05\/image-105.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/79948","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=79948"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/79948\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/79957"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=79948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=79948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=79948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}