Anti-Money Laundering (AML)

French prosecutors are starting a new investigation into Binance, over claims of money laundering and drug trafficking. According to reports by Reuters, Binance is accused of breaking these regulations in not just France, but at least 10 European Union countries between 2021 and 2025, with allegations ranging from Anti-Money Laundering violations to failing to register as a securities operations.

South Korea’s Financial Services Commission is easing restrictions on institutional crypto trading, starting with non-profit organizations, after the Virtual Asset User Protection Act passed in 2024. The country is also planning to introduce a 20% crypto tax in 2025 and explore crypto ETFs and security tokens to boost market participation.

Kazakhstan shut down 36 illegal crypto exchanges, seizing $4.8 million in assets, as part of a larger effort to combat financial crime. The government is also tightening regulations to prevent crypto-related money laundering and pyramid schemes.

Binance co-founder CZ welcomes the idea of a presidential pardon but has no interest in resuming his role as CEO. After pleading guilty to a felony and serving four months in prison, a pardon could redefine his opportunities in the crypto space.

Roman Sterlingov, founder of the Bitcoin Fog crypto mixer, was sentenced to 12.5 years in prison for laundering over $400 million linked to illegal activities. He was also ordered to forfeit $395.5 million and his share in a Bitcoin wallet holding 1,345 BTC, worth over $103 million.

The US DOJ has charged Maximiliano Pilipis, the operator of crypto exchange AurumXchange, with money laundering and tax offenses. Alongside laundering allegations, Pilipis faces charges for failing to file tax returns on income earned in 2019 and 2020.

ESMA plans to propose mandatory external audits of crypto companies' cybersecurity following a $1.5 billion theft in early 2024, an 84% rise from 2023, to strengthen defenses and protect users.

TikTok is under UK scrutiny for allegedly operating as an unlicensed crypto exchange, raising concerns about financial regulation. This mirrors recent actions against platforms like Telegram, sparking questions about whether more social media apps will face similar scrutiny.

Ripple's new crypto custody services aim to provide secure storage solutions for banks and fintechs, with the firm expanding its business amid growing competition from established custody providers.

The UNODC report highlights the growing use of cryptocurrency and AI by organised crime groups in Southeast Asia, emphasising the challenges governments face in containing the situation.