Representatives from Coinbase and Circle Call for Crackdown on Non-Compliant Crypto Firms
Officials from Coinbase and Circle have urged the U.S. government to take action against international digital asset firms that are not complying with regulations. During a congressional hearing, Grant Rabenn from Coinbase highlighted the issue of criminals using offshore platforms to avoid anti-money laundering rules imposed by regulated exchanges. He called on the U.S. government to use all available tools to address this problem. Binance, the world’s largest cryptocurrency exchange, recently paid a $4 billion fine for failing to comply with anti-money laundering regulations.
Coinbase Focuses on Offshore Exchanges
Rabenn emphasized that non-compliant entities often try to avoid anti-money laundering requirements by operating in different jurisdictions. He stated that these platforms should be targeted and held accountable by regulators. Rabenn praised recent enforcement actions in the crypto anti-money laundering space and stressed the importance of accountability.
Tackling Misbehaving Stablecoin Issuers
Circle, on the other hand, directed its concerns towards stablecoin issuers that do not comply with regulations. The company has previously frozen its USDC tokens to prevent misuse. Circle believes that some stablecoin issuers disregard anti-money laundering regulations because they consider themselves exempt from them. Caroline Hill from Circle expressed her belief that any company referencing the U.S. dollar should uphold democratic values within their stablecoin.
Hill also mentioned Tether as a concern and suggested that authorities should take action against Cantor Fitzgerald, which holds most of Tether’s reserve assets, for potentially facilitating terrorist financing. She called for a serious examination of Tether’s reputation and its alleged involvement in illicit activities.
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