Timothy Mark-Ugwumba’s Post

French authorities have expanded AML checks across more than 100 registered crypto providers to inform MiCA (Markets in Crypto-Assets Regulation) licensing decisions. Inspections include major exchanges such as Binance and Coinhouse.  https://lnkd.in/dXQTzAPm

🌐 Global Crypto Regulatory Updates A big week for digital-asset policy worldwide. Regulators are sharpening oversight while building clearer paths for compliant innovation. Here is the summary of key events: 🇬🇧 United Kingdom – Stablecoin Rules Take Shape The Bank of England has released a consultation paper outlining how it plans to regulate sterling-denominated stablecoins. The proposed framework introduces a two-tier system: - The FCA would supervise non-systemic stablecoins - The Bank of England would oversee “systemic” stablecoins that could impact financial stability. The BoE also introduces more workable reserve requirements and temporary holding caps to smooth the transition into regulated payments. This marks a major step toward integrating digital currencies into the UK’s financial ecosystem with clear prudential safeguards. 🇧🇷 Brazil – Full VASP Framework Comes Into Force Brazil’s central bank has published detailed rules implementing its crypto law, creating one of the region’s most comprehensive supervisory regimes. Stablecoin transactions will now be treated as foreign-exchange operations, AML obligations fully apply to VASPs, and the new licensing regime takes effect in 2026. 🇭🇰 Hong Kong – SFC Expands Licensed Platform Capabilities Hong Kong’s SFC has released new circulars allowing licensed virtual-asset platforms to: - Use shared order books with compliant overseas affiliates - Access more flexible token-listing timelines - Offer broader custody and digital-asset product services Hong Kong continues strengthening its position as a regulated global hub for digital assets. 🇺🇸 United States – New Federal Strike Force Targets Crypto Scams The U.S. has launched a dedicated Scam Center Strike Force to tackle large-scale crypto fraud networks. The initiative brings together DOJ, FBI, Secret Service, Treasury and State to pursue coordinated seizures, sanctions, and infrastructure takedowns - shifting from case-by-case enforcement to dismantling entire criminal ecosystems. 🌍 FATF – New Guidance on Seizing Virtual Assets FATF issued updated global guidance focused on virtual-asset seizure and recovery. It calls on jurisdictions to: - Empower agencies to trace, seize, manage and dispose of crypto assets - Train frontline officers to recognise wallets, seed phrases and exchange accounts - Use blockchain analytics as a standard investigative tool FATF is raising the global bar for what “effective” crypto enforcement looks like in practice. Overall trend: More clarity. Stronger enforcement. And a coordinated global push to bring legitimate digital-asset activity inside regulated frameworks — while aggressively disrupting illicit networks. #CryptoRegulation #DigitalAssets #Stablecoins #FATF #Compliance #FinCrime #RegTech #Web3 #CryptoCompliance

The Central Bank of Ireland fines Coinbase Europe Limited €21.5 million 💸 The Central Bank of Ireland has fined Coinbase Europe Limited a staggering €21.5 million for serious violations of AML legislation. The regulator found that over approximately 12 months, the company failed to properly monitor more than 30 million transactions totaling around €176 billion 📊. This disciplinary action has become the largest in the history of virtual asset regulation in the EU. What does this mean for CASPs in the EU? 🤔 This precedent clearly indicates that EU regulators are no longer focused solely on the exchange of virtual assets. They are actively inspecting transaction monitoring systems, internal compliance procedures, reporting, and tools for detecting suspicious activity 🔍. This means not only the requirement to hold the appropriate license, but also the development of a full-fledged AML/CTF infrastructure, comparable to banking standards 🏦. How to avoid fines and liability? 🛡️ Companies operating or planning to enter the European market must now bring their activities into full compliance with MiCA, and also consider alternative jurisdictions that allow flexible and legal scaling in the virtual assets sector 🌍. FINANCEIQ HUB LTD offers comprehensive business support: ✅ Obtaining a MiCA license in the EU – full support from preparation to operational launch. ✅ MSB license in Canada – an ideal option for companies seeking alternative access to the global market outside the strict EU framework 🇨🇦. ✅ MSB license in the USA – Country is now actively developing in the virtual assets space 🇺🇸. This is a major market worth attention. ✅ Account opening (operational, client funds, merchant, liquidity providers, on-ramp/off-ramp) – for MiCA, MSB, FMSB, high-risk businesses, and more 🏦. ✅ AML/CTF system, internal audit, policies and procedures – everything needed to avoid sanctions from regulators ⚙️. 📩DM us today for a full consultation. #FinancelQHub #DigitalEuro #EuropeanFinance #FintechEurope #EUFinance #BankingInnovation #FutureOfFinance #DigitalAssets #MiCA #MSB #FMSB #Law #StablecoinNews #FinanceNews #Legal #MSBlicense #MiCAready

Emerging Legal Mechanisms to Combat Money Laundering Through Digital Currencies From Global Frameworks to the Arab Experience in Digital Financial Regulation ✍️ By Ibrahim Al-Salamouni With the rapid expansion of the digital asset economy, cryptocurrencies have evolved from innovative financial tools into one of the most complex legal challenges facing modern financial systems. While blockchain technology has introduced unprecedented financial freedom, it has simultaneously opened new channels for money laundering and illicit finance beyond the scope of traditional banking oversight. 1. Global Transformation of AML Standards International bodies, led by the Financial Action Task Force (FATF), quickly recognized the risks associated with virtual assets and amended Recommendation 15 to explicitly include Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs). The introduction of the Travel Rule became a cornerstone mechanism—requiring intermediaries in digital transactions to disclose the sender’s and recipient’s identifying information, mirroring traditional wire transfer obligations. In the European Union, the Markets in Crypto-Assets Regulation (MiCA) and the Transfer of Funds Regulation (TFR) now impose Anti–Money Laundering (AML) and reporting obligations on licensed crypto operators. The EU also established the European Anti–Money Laundering Authority (AMLA) to create a unified supervisory framework overseeing high-risk entities, including crypto exchanges, across member states. Meanwhile, the United States, through the Financial Crimes Enforcement Network (FinCEN), has updated its AML regulations to cover digital asset businesses, tightening Know Your Customer (KYC) rules and requiring the reporting of suspicious digital transactions. 2. New Legal and Technological Enforcement Tools Legal reform alone is not enough. Law enforcement agencies have adopted blockchain analytics tools to trace suspicious wallets and transactions across borders, enabling authorities to freeze and seize digital assets in cooperation with international trading platforms. In parallel, several technical protocols have emerged to implement the Travel Rule securely, allowing VASPs to exchange compliance data through encrypted, privacy-preserving networks. 3. The Arab Approach – Between Caution and Regulation Arab countries have taken diverse approaches toward regulating cryptocurrencies, balancing innovation with financial integrity: The United Arab Emirates has been a regional pioneer, establishing the Virtual Assets Regulatory Authority (VARA) in Dubai, which ties licensing to strict FATF-based AML requirements. Saudi Arabia has maintained a cautious stance, prohibiting individual trading in crypto assets while developing technical oversight capacities through the Saudi Central Bank (SAMA) and studying central bank digital currencies (CBDCs). .

No. 2️⃣2️⃣ - Virtual Asset Snapshot: Saudi Arabia - What are the regulatory developments, current landscape and key money laundering vulnerabilities related to virtual assets and VASPs? ⚖️ 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸 Saudi Arabia maintains one of the Gulf’s most restrictive environments for virtual assets. The Saudi Central Bank (SAMA) and Ministry of Finance have warned repeatedly that cryptocurrencies operate outside the Kingdom’s supervision. FATF’s 2025 update classifies Saudi Arabia as a jurisdiction that prohibits the use of virtual assets and VASPs in practice. No exchange or service provider is licensed domestically, and crypto is not recognised as legal tender. 🏛️ R𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗢𝘃𝗲𝗿𝘀𝗶𝗴𝗵𝘁 Oversight lies primarily with SAMA and the Capital Market Authority (CMA), supported by the Financial Intelligence Unit and the Anti-Money-Laundering Permanent Committee (AMLPC). Saudi Arabia has conducted a national risk assessment covering VAs and VASPs (per FATF), but its findings have not been made public, reflecting a cautious but opaque stance. 🪪 𝗟𝗶𝗰𝗲𝗻𝘀𝗶𝗻𝗴 & 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 Because Saudi’s approach is prohibitionist, no VASP licences exist. The FATF notes licensing and inspection obligations are not applicable. While the #TravelRule gained global traction in 2024–25, there is no public evidence of Saudi enforcement. Similarly, Saudi is not listed among OECD jurisdictions committed to the Crypto-Asset Reporting Framework (CARF) for 2027 exchanges. 💸 𝗠𝗟/𝗧𝗙 𝗥𝗶𝘀𝗸𝘀 The absence of licensed VASPs makes detection and supervision of crypto activity difficult. Cross-border transfers via foreign platforms and P2P networks are largely outside domestic monitoring, heightening exposure to money laundering, terrorist financing and sanctions evasion. The #FATF highlights these gaps as major vulnerabilities for prohibitionist jurisdictions. 🧾 𝗧𝗮𝘅𝗮𝘁𝗶𝗼𝗻 & 𝗧𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆 Crypto’s tax treatment remains unclear. There is no explicit framework for taxing capital gains, mining or airdrops. While income from crypto may theoretically fall under general tax provisions, public guidance is limited, and Saudi has not yet committed to CARF transparency standards. 🔍 𝗞𝗲𝘆 𝗩𝘂𝗹𝗻𝗲𝗿𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀 1️⃣ Offshore exchanges and informal P2P markets bypass KYC and AML controls. 2️⃣ Weak cross-border information sharing limits detection of illicit flows. 3️⃣ No public NRA findings leave businesses without clear risk indicators. 4️⃣ Ambiguity around reporting and taxation creates compliance uncertainty. 🚀 𝗙𝘂𝘁𝘂𝗿𝗲 𝗢𝘂𝘁𝗹𝗼𝗼𝗸 Saudi Arabia’s Vision 2030 aims to balance innovation and financial integrity. The Kingdom continues to explore blockchain and fintech but maintains a ban on crypto trading. Gradual evolution is expected only after greater FATF and OECD alignment. Access full reporting and scoring on all 245 jurisdictions via subscription. 👉 sales@knowyourcountry...

I have been studying the regulatory approach to digital assets across several African countries and found a pattern I initially thought was peculiar to Nigeria namely, the government’s reaction to the emergence of digital assets as a new asset class, particularly cryptocurrencies. Across jurisdictions, a broadly consistent sequence can be observed: an initial reflex of caution or restriction, followed by gradual engagement and selective regulation. While not every country follows this trajectory in a rigid or uniform way, the general progression remains strikingly similar. Below is a synthesis of that pattern. 1. Reflexive caution and public warnings At first, central banks and financial regulators react with public advisories and warnings. Authorities emphasise volatility, consumer-protection risks, and potential criminal uses (money-laundering, terrorism financing), and they urge citizens to avoid speculative exposure. This is an immediate risk-management posture: visible, low-cost, and politically defensible. 2. Defensive operational measures Next, regulators adopt operational controls aimed at limiting the domestic plumbing for crypto activity: banking restrictions, refusals to offer correspondent services to VASPs, or directives preventing regulated institutions from handling crypto transactions. These measures seek to contain perceived threats to monetary stability and capital controls. 3. Outright bans (in some cases) A minority of states move from warnings to prohibition criminalising exchange activity or denying service provision. These bans are typically driven by acute concerns about currency sovereignty, weak AML/CFT capacity, or the absence of a policy framework to manage spillovers. 4. Fragmentation and inter-agency divergence Where the policy ecosystem involves multiple authorities (central bank, securities commission, tax authority), responses tend to diverge: one agency may favour prohibition or strict control while another pushes for market supervision or sandboxing. The result is regulatory fragmentation and legal uncertainty. 5. Reassessment and selective engagement As adoption deepens and use-cases (remittances, stablecoins for cross-border payments, merchant acceptance) become visible, authorities begin to reassess. This takes the form of consultations, regulatory sandboxes, targeted licensing of VASPs, or activity-based rules rather than asset bans. 6. Formalisation into law and targeted supervision Ultimately, some jurisdictions move toward formalising digital asset activity within legal and supervisory frameworks. This may involve creating token taxonomies, developing licensing regimes for intermediaries, adopting AML/CFT standards aligned with FATF’s Travel Rule, and, in some cases, exploring or launching central bank digital currencies (CBDCs). The initial defensive stance gradually transitions into a calibrated model of oversight aimed at enabling innovation while controlling risk.

🚨 New Warning from the EBA: Six Red Flags in Europe’s Crypto Sector The European Banking Authority (“EBA”) has recently issued a landmark Supervisory Report, identifying how certain Crypto-asset Service Providers (“CASPs”) have exploited regulatory gaps to facilitate financial crime. As the EU moves toward a fully harmonised framework under Markets in Crypto-Assets Regulation (“MiCA”) and the new Anti-Money Laundering (“AML”) framework, the report highlights six structural vulnerabilities that supervisors across Member States have repeatedly identified: 1. Unauthorized or Unregistered Operations 2. Forum shopping across EU jurisdictions 3. Misuse of the Reverse-solicitation Exemption 4. Weak AML/CFT Controls 5. Opaque Ownership and Governance Structures 6. Multi-entity Networks used to Bypass Supervision Each of these red flags highlights a key area where supervisory expectations, and enforcement, will rise sharply under MiCA. My latest article, breaks down what these findings mean for crypto firms, compliance officers, and regulators, and how smart firms can turn compliance into a competitive edge. 💡The message is simple: Firms that treat this report not as a warning, but as a strategic checklist, will shape the next phase of Europe’s Digital Finance Landscape. Read the full Article here: https://lnkd.in/dDU_B5P9 #EBA #MiCA #CryptoCompliance #FinancialRegulation #AML #CFT #Crypto #EURegulation #Fintech #CASPs #EURegulation #DigitalFinance #ComplianceLeadership #Governance #RegulatoryCompliance #FinancialCrime

Digital Currency Under Fire: Cryptocurrencies Linked to Rising Money Laundering Concerns Introduction The rapidly evolving world of digital currency is capturing global attention. However, along with its immense potential comes a darker side—mounting concerns regarding cryptocurrencies’ role in money laundering. Recent reports highlight alarming connections between digital currencies and illicit financial activities, prompting regulators to take a closer look at this groundbreaking technology. The Rise of […] Read more https://lnkd.in/diPfQtGf Compliance Edge, CAAS for High Risk #FintechCompliance #RegTech #BankingCompliance #AML #KYC #TransactionMonitoring #PaymentCompliance #SEPACompliance #PSD2Compliance #FintechRegulation #ComplianceTech #FinancialCrimePrevention #RegulatoryReporting #eMoneyCompliance #FintechLicensing #BaaSCompliance #RiskManagement #FraudPrevention #BankingRegulation #ComplianceSolutions #DataPrivacy #GDPR #CrossBorderCompliance #Fincrime #SecurePayments

Global Crypto Regulatory Updates – A Week of Strong Actions and Reforms The past week has seen significant developments in crypto regulation and enforcement across multiple jurisdictions. Each event reinforces one message: oversight in the digital asset space is becoming sharper and more coordinated globally. Germany (BaFin Warning) BaFin has issued a warning against fraudulent trading platforms and investment apps promoted through WhatsApp groups and websites such as ki-zep.com and h5.beststreaming.vip. These platforms were found to be offering trading and crypto investment services without regulatory authorisation, often pretending to be linked to licensed financial institutions. Investors were lured through social media and chat groups and later faced withdrawal issues. BaFin cautions users to verify the legitimacy of any financial service provider before investing — scams are increasingly shifting to personal messaging platforms. United Kingdom (Crypto Fraud Case) UK authorities have sentenced Chinese national Qian Zhimin to more than 11 years in prison for orchestrating a $6 billion Bitcoin fraud — one of Europe’s largest crypto-related criminal cases. The investigation uncovered over 61,000 Bitcoins linked to a fraudulent investment network operating across China and the UK. The case highlights how cryptocurrencies continue to be used for laundering illicit funds, but also how enforcement capabilities in tracing such assets have significantly advanced. Bank of England (Stablecoin Regulation Framework) The Bank of England has released a consultation paper outlining how it plans to regulate sterling-denominated stablecoins. The proposed framework introduces a two-tier system: the Financial Conduct Authority (FCA) would supervise non-systemic stablecoins, while the Bank of England would oversee those considered “systemic” — meaning they could impact financial stability. The goal is to ensure adequate reserves, operational resilience, and transparency. This marks a major step toward integrating digital currencies into the UK’s regulated payment ecosystem. Ireland (Coinbase Fine) The Central Bank of Ireland has fined Coinbase Europe €21.5 million for serious failures in its transaction monitoring systems. Between 2021 and 2025, technical issues caused around 30 million transactions — some tied to high-risk activities such as drug dealing and child exploitation — to bypass AML screening. The lapse resulted from coding errors in Coinbase’s monitoring system and required years of remediation and retrospective reviews. The fine serves as a strong signal that crypto firms will be held to the same AML standards as traditional financial institution

 After studying the #enforcement report released by the Central Bank of Ireland on Coinbase Europe, a critical compliance lesson emerges—especially for #UAE-based #VASPs under #VARA. Coinbase Europe was fined €21.5 million for serious AML/CFT failures, including a misconfigured transaction monitoring system that left over 30 million transactions unmonitored. #The_root_cause? A heavy reliance on its U.S. affiliate, Coinbase Inc., whose own compliance systems had already been flagged by #NYDFS for deficiencies. Crucially, Coinbase Europe was unaware of these failures—revealing a breakdown in oversight and risk governance. This case highlights a key principle in compliance: outsourcing or intra-group reliance does not absolve responsibility. Under UAE’s Virtual Assets Regulatory Authority (#VARA), entities must ensure that all systems—whether internal or external—meet the jurisdiction’s standards. #VARA’s_Compliance_and_Risk_Management_Rulebook emphasizes: - #Due_Diligence to the Counterparties not just Clients -Independent #risk_assessments -Periodic reviews of counterparties and affiliates -Robust transaction monitoring tailored to UAE’s regulatory expectations The moral is clear: #VASPs operating in the #UAE must not only implement controls but also validate them continuously, especially when relying on shared infrastructure or foreign entities. #Governance frameworks must include #audit_rights, #escalation_protocols, and #jurisdiction_specific_compliance_testing. In a fast-evolving regulatory landscape, compliance is not inherited—it’s earned through proactive oversight. In the #UAE, nearly zero tolerance for lapses—especially in crypto—means missing a single #STR due to backyard blind spots is non-negotiable. True compliance demands continual validation and fiscal accountability—not optimism. Author : Omar Farouz #ComplianceMatters #CryptoRegulation #AMLCompliance #VASPCompliance #RiskManagement #TransactionMonitoring #AMLInsights #RegTech #FinancialCrimePrevention #VARA #UAECompliance #DubaiCrypto #VirtualAssetsUAE #UAERegulation #MiddleEastCompliance #LinkedInLearning #ComplianceLeadership #GovernanceAndRisk #LessonsLearned #CaseStudyInsights #ProfessionalDevelopment