Do you fear an "Operation Choke Point 2.0" in your country? (Poll)

[Peter90]

DoJ Charges Crypto Exchange KuCoin Over Billions In Criminal Funds

United States Justice Department (DoJ) officials unsealed an indictment against cryptocurrency exchange KuCoin and two of its founders for "conspiring to operate an unlicensed money transmitting business" and violations of the Bank Secrecy Act.

U.S. Attorney Damian Williams said:
“As today’s Indictment alleges, KuCoin and its founders deliberately sought to conceal the fact that substantial numbers of U.S. users were trading on KuCoin’s platform.

Indeed, KuCoin allegedly took advantage of its sizeable U.S. customer base to become one of the world’s largest cryptocurrency derivatives and spot exchanges, with billions of dollars of daily trades and trillions of dollars of annual trade volume.  But financial institutions like KuCoin that take advantage of the unique opportunities available in the United States must also comply with U.S. law to help identify and drive out crime and corrupt financing schemes.  KuCoin allegedly deliberately chose not to do so.

As alleged, in failing to implement even basic anti-money laundering policies, the defendants allowed KuCoin to operate in the shadows of the financial markets and be used as a haven for illicit money laundering, with KuCoin receiving over $5 billion and sending over $4 billion of suspicious and criminal funds.

Crypto exchanges like KuCoin cannot have it both ways.  Today’s Indictment should send a clear message to other crypto exchanges: if you plan to serve U.S. customers, you must follow U.S. law, plain and simple.”

zerohedge.com


On the Tether Gold thread someone said Kinesis shouldn't do KYC because crypto people don't like it.
The KuCoin story shows why currently any crypto business in the USA should do KYC...

[Peter90]

Kraken: No services to New York and Washington residents

At this time, Kraken does not offer service to residents of:
Washington state (WA)
New York (NY)

While we strive to offer our services to all US residents, the cost of maintaining regulatory compliance in some states can be very high, forcing us to make hard choices about whether cost justifies doing business in the state.

support.kraken.com

Operation CK2:
Authorities can hinder crypto businesses by increasing costs for complying with regulations

[Peter90]

It’s not just the SEC.
The Federal Reserve leads the Operation Chokepoint 2.0 crackdown on crypto.

Custodia Bank has sued the Fed because it failed to approved Custodia's application for a Fed "master account."

A Fed "master account" is essentially a bank account for banks, allowing banks to use the Fed system for check clearing, wire transfers and ACH payments.
Federal law requires the Fed to grant a master account to any federal or state chartered depository institution.
Custodia is a Wyoming chartered depository institution.

It usually takes 5-7 business days for the Fed to approve a master account.
Custodia waited with no response from the Fed to its master account application for 20 months. 
So, Custodia was left with no option but to sue the Fed.
The Fed then denied Custodia’s application for a master account 8 months after the lawsuit was filed. 


Custodia has turned up some fascinating details in the discovery it has conducted against the Kansas City Fed and the main Fed in DC.
A tangled web indeed:
In connection with Custodia's application for a master account, the Kansas City Fed conducted a comprehensive examination of Custodia and submitted its Report of findings to the main Fed in DC.
What happened with that Report tells you all you need to know about how our government is treating crypto.

Capital
After a comprehensive investigation, the Kansas City Fed's Report concluded that Custodia’s capital was “adequate.” 
Without any additional investigation, the Fed in DC changed the Report to say there was a “lack of a robust capital requirement framework” at Custodia.

Risk Management
The Kansas City Fed concluded that Custodia had “strong risk management” practices.
The Fed in DC changed the Report to say there were “significant risk management gaps.”

Liquidity
The Kansas City Fed concluded that “liquidity risk was relatively low” at Custodia. 
This makes sense because, unlike banks that use a "fractional reserve" business model to lend out deposits, Custodia uses a "fully reserved" model--meaning it retains liquid reserves covering over 100% of the deposits it takes in.
Notwithstanding its hyper-conservative liquidity model, the Fed in DC changed the Report to say there were “insufficient liquidity risk management processes” at Custodia.

Management Experience
The Kansas City Fed concluded that the experience of Custodia's management team was “impressive” and “extensive.”   
The Fed in DC changed the Report to say there was a “lack of collective depth of relevant banking experience” at Custodia.


The Report, “revised” by the Fed in DC to say the opposite of what the Kansas City Fed had concluded, was used as the basis for denying Custodia's application for a master account.

It is obvious from the documents uncovered in discovery that the process was rigged because the Fed objected to Custodia’s plan to provide banking and digital asset services to individuals and businesses involved in crypto.

Fighting the Fed is the quintessential David v. Goliath battle.

Fortunately, Caitlyn Long, the CEO of Custodia, is a fighter. 
But Caitlin is not just fighting for Custodia, she is fighting for all of crypto and the principle of financial freedom.

https://twitter.com/MetaLawMan/status/1752722655881441651

[Peter90]

How does the forum deal with fake news?

Hello ignorant ******s
I hope you are following this thread and learning something

Don Pedro Dinero

famososMuertos

Zed0X

MrSpasybo

bitterguy28

admin

bitmover

hugeblack

[bitmover]

How does the forum deal with fake news?

I don't get why I was quoted?

Do you have reference links to that bank situation in USA? Like big jornal?

[Peter90]

This woman is fighting vs the US gov in order to offer US crypto fintech banking services
The whole crypto community around the world should revere here

She's a hero

[Peter90]

Caitling Long - CEO of Custodia Bank - talking about Operation CP2

US gov debanking not only crypto but all fintech











How does the forum deal with fake news?

Don Pedro Dinero

famososMuertos

Zed0X

MrSpasybo

bitterguy28

bitmover

hugeblack


Hello trolls
instead of group-defecating on other users
start reading around and inform yourselves

[Peter90]

The feds are trying to stifle Bitcoin and crypto with draconian new regulations


In response to the Treasury Department’s requests, a new bill called the ENFORCE Act is being floated to expand existing money laundering rules into the crypto sector even more harshly than it is applied to traditional fiat currencies.

It would also require filing Suspicious Activity Reports with the Financial Crimes Enforcement Network for any “suspicious transaction that it believes is relevant to the possible violation of any law or regulation,” beginning at $2,000.
This overly broad definition extends to any crypto transactions that “serve no business or apparent lawful purpose” as determined by any crypto exchange, and they would be legally required to withhold information of this report from the customer.

While this bill is much less harsh than similar proposals from anti-crypto firebrand Sen. Elizabeth Warren, it would provide stricter rules and procedures for crypto companies than the traditional banking sector.
For the average American consumer and user of cryptocurrencies on custodial services, that means there would be more scrutiny and surveillance at a smaller threshold on Coinbase than Bank of America.

Rather than embracing the permissionless innovation that Bitcoin and its cryptocurrency offspring provide, these rules would force yet more financial surveillance and regulatory compliance on the next iteration of digital money, artificially choking the growth of this industry.

It would also cause even more Americans to be caught up in the dragnet of “de-banking” for crypto, as institutions would rather cut off customers’ access to their services rather than comply with the unreasonable requirement of Suspicious Activity Reports for transactions above a small threshold, as we already see in the traditional banking system.

Because these reports have no inherent justification or process many bank customers have had their accounts closed or suspended without due process. Many are likely to be minorities, the underbanked, and politically active or religious groups.


theblaze.com





How does the forum deal with fake news?

Don Pedro Dinero

famososMuertos

Zed0X

MrSpasybo

bitterguy28

admin

bitmover

hugeblack

Hello ignorants
I know it's boring reading articles
next time inform yourself before group-defecating on other users