The U.S. Securities and Exchange Commission (SEC) said on Friday (May 28) that it has filed “an action” against five people, alleging that they marketed an international “global unregistered digital asset securities offering” that brought in more than $2 billion from retail investors, according to a statement. BitConnect harnessed a network of promoters to market and sell securities through its “lending program” between roughly January 2017 and January 2018, according to the statement, which cited the SEC’s complaint.
In other news, CipherTrace has become a part of the Binance Smart Chain ecosystem, according to a blog post from Binance on Thursday (May 27). The digital currency intelligence firm unveiled analytics support for Binance Smart Chain, which allows “higher-risk financial transactions” on the smart chain and its 600+ decentralized apps to be found.
Moreover, CipherTrace’s analytics let Virtual Asset Service Providers (VASPs) such as OTC desks and exchanges, among others, flag transactions taking place on the smart chain with an elevated chance of “originating in illicit activity,” according to the announcement.
CipherTrace now examines in excess of 1,000 virtual assets on various blockchains, according to the announcement.
And just five crypto asset companies have “received registration” from the United Kingdom’s Financial Conduct Authority (FCA) since January 10, 2020, as of May 24, 2021, according to a post from Monday (May 24) on the U.K. Parliament’s website. The FCA became the anti-money laundering (AML) and counter-terrorist financing (CTF) supervisor for crypto asset companies on January 10, 2020.
“Due to the complexity and standard of applications received, the FCA was not able to process and register all applications by the 10 January 2021 deadline. A significant number of firms have failed to implement appropriately robust AML control frameworks, and to employ fit and proper personnel,” Member of Parliament John Glen wrote on the website.
However, Glen wrote that the FCA said on December 16, 2020, that it was putting a temporary registration regime into place. As a result, “relevant firms” can keep trading as they await decisions. “This is due to expire on 9 July 2021,” he wrote in the post.
