Surely cryptocurrency is impressively diffusing into the mainstream. Therefore, authorities are stepping up efforts to make sure crypto traders are within the confines of the law. Regulations are pouring into cryptocurrency trading to avoid giving a free reign to traders and investors to outsmart law. Authorities are regularly keeping a sharp eye on blockchain transactions, watching out for attempts of money laundering of cryptocurrency on the darknet. The darknet is an online market the individuals use for financing criminal actions like drugs, prostitution, and even terrorism.
Authorities Arrest Man for Running Unlicensed Cryptocurrency Exchange
Jacob Campos, from Mexico, is in police custody for managing an unlicensed cryptocurrency exchange. To begin with, US authorities are slapping Campos, who is 21 years old, with 31 charges related to money laundering. Authorities say Campos deliberately runs the illegal exchange which violated requirements of money transmitting business registration. US authorities point out that Campos’ illicit exchange was in operation from roughly January 2015 to around April 2016.
According to the indictment from the authorities, “From on or about December 2016, to on or about March 2018, […] defendant Jacob Burrell Campos did combine, conspire, confederate and agree with others known and unknown to the Grand Jury to commit an offense against the United States, that is to structure and assist in the structuring the importation of monetary instruments for the purpose of evading the reporting requirements of U.S. regulations.”
In light of this, authorities have accused Campos of having completed 971 transactions for over 890 different customers. Some of the charges he faces include, conspiracy to structure monetary transactions and violating an anti-money laundering program. At present, Campos is held without bail as he awaits trial.
Tencent and Alibaba Working with Chinese Regulators
In another development still related to cryptocurrency regulation, Tencent and Alipay are working with Chinese authorities clamping down on cryptocurrency trading. Alipay is a mobile payment app developed by international e-commerce giant, Alibaba.
According to a statement from Alipay, ““Alipay has always adhered to the principle of not providing services to virtual currency transactions. We will continue to closely monitor over-the-counter trading activities on a daily basis. Once we find any suspicious crypto-related transactions, we will take appropriate measures immediately.”
Similarly, Tencent, the developers of WeChat, announced it would work with Chinese authorities to stop cryptocurrency transfers on its platforms.