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Hong Kong is encouraging banks to cater to the needs of licensed virtual-asset firms a move that highlights the citys ambition to establish itself as a leading cryptocurrency center.

Meanwhile, in the U.S., banks are tightening restrictions on the digital-asset sector.A logo of the digital currency Bitcoin is pictured on an ATM in a mall in Hong Kong on November 1, 2022. In contrast to mainland China where crypto has been all but banned, Hong Kong is looking to relax regulations and claw back some of the business that has left and is exploring whether to legalise crypto trading by retail investors. PETER PARKS/BENZINGA

The Hong Kong Monetary Authority (HKMA) issued a statement on Thursday, which called on banks to assist regulated virtual-asset businesses by addressing their legitimate need for bank accounts in the city, Bloomberg reported.

The statement, signed by Deputy Chief Executive Arthur Yuen, advised banks to invest in staff training and establish specialized teams to support the digital-asset sector, while cautioning against a wholesale de-risking approach that might deter new industries or specific nationalities.

Globally, banks are becoming more cautious about the industry, particularly after events such as the FTX (CRYPTO: FTT) exchange debacle and the market crash.

The fall of crypto-friendly banks Signature Bank and Silvergate Capital Corp. this year has been particularly damaging, forcing the sector to search worldwide for alternative payment channels.

As the U.S. tightens regulations on the cryptocurrency industry and issues warnings about liquidity risks, an increasing number of virtual-asset businesses are either leaving the U.S. or considering doing so, while others seek to expand abroad.

In contrast, Hong Kong plans to introduce a new licensing system for crypto platforms on June 1, allowing retail investors to trade major tokens like Bitcoin (CRYPTO: BTC) and Ether (CRYPTO: ETH).

Bank of Communications Co., Bank of China Ltd., and Shanghai Pudong Development Banks Hong Kong branches have either started providing banking services to local crypto firms or have expressed interest in doing so, according to sources familiar with the situation.

As Hong Kong is stepping up efforts to cultivate a web3-friendly environment, ZA Banks online account opening for Web3 startups represents a major step forward in the integration of traditional banking services with the web3 world, said Ronald Lu, CEO of ZA Bank.

It signals a greater acceptance and recognition of the importance of this emerging sector and hopefully will encourage other financial institutions to follow suit in offering tailored banking services for web3 companies. We look forward to exploring collaborations with key global web3 businesses such as HashKey, OKX and more.

Hong Kongs largest virtual bank, ZA Bank Ltd., intends to offer token-to-fiat currency conversions through licensed exchanges. In addition, Arthur Yuen announced that the HKMA and the Securities and Futures Commission are co-hosting a round table on Friday, bringing together lenders and virtual-asset platforms to discuss account opening procedures and share other relevant information.

Banks in China have been cautious about dabbling the use of cryptocurrencies as they have become popular in the U.S.

El Salvador is the only country in the world that is use bitcoin as their legal tender, but not recognized by the International Monetary Fund.

Produced in association with Benzinga

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Hong Kong Banks Looking To Be The Leader In Cryptocurrency ... - The Florida Star

Cryptocurrency has become a popular way to invest and transact, but with that comes the need for sanctions compliance. In this episode, Michael Volkov and Matt Stankiewicz discuss the recent enforcement actions against Poloniex, Bittrex, and Kraken for violating US sanctions regulations with cryptocurrency transactions. Matt is a Partner at Volkov Law and a leading cryptocurrency expert. He and Michael dive into the common themes and basic failures that led to these enforcement actions, including IP blocking, transaction monitoring, Seemore+

1. Cryptocurrency companies are struggling to implement KYC and geo-blocking controls, which is leading to violations involving sanctioned jurisdictions.

2. OFAC is taking an aggressive stance against cryptocurrency companies. Companies in the cryptocurrency industry need to implement effective sanctions compliance programs to avoid hefty fines and enforcement actions from regulatory authorities.

3. There is no materiality requirement for sanctions violations, and even small transactions can result in multimillion-dollar fines.

4. Retroactively applying controls to existing customers is important, and failing to do so can lead to violations.

5. Companies need to have a comprehensive and automated system in place to detect and prevent violations.

6. Companies need to be vigilant about screening individuals and transactions against the relevant sanctions lists, including screening field text, addresses, and ID cards.

7. Geo-blocking for IP addresses is a crucial compliance control, but it is not perfect and can be circumvented by VPNs.

8. Voluntary disclosure of violations can lead to more favorable outcomes and lower fines from regulatory authorities.

9. OFAC and other regulatory authorities are using analytical tools to monitor transactions and flag potential violations, so cryptocurrency companies should not assume they can go under the radar.

10. Companies can use the public blockchain to monitor transactions and identify potential sanctions risks.

11. Sanctions compliance programs should be regularly reviewed and updated to address new risks and changes in regulations.

KEY QUOTES:

There are a lot of tools available to these companies to monitor transactions, maybe better than in the traditional finance world, just because everything on the blockchain is public record essentially. Matt Stankiewicz

Its just interesting to see OFAC go so aggressively against these companies. Not too surprising considering the extreme sanctions risk that cryptocurrency poses. Very importantly, theres still a lot of takeaways that really any industry can take away from these enforcement actions. Matt Stankiewicz

If you find problems, obviously you want to remediate them, but figure out what you need to do in terms of voluntary disclosures, because typically youll be much better off than if OFAC figures it out on their own, which they usually do. Matt Stankiewicz Seeless-

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Corruption, Crime, & Compliance - Cryptocurrency and Sanctions ... - JD Supra

The United States Department of Justice (DOJ) is gearing up to take action against cryptocurrency companies, according to a report from the Financial Times.

The U.S. #cryptocurrency enforcement tsar has said that the country was stepping up scrutiny of crypto exchanges to target illicit behavior on the platforms, the Financial Times reported on Monday.https://t.co/rCjVwetJ4D

The director of the DOJs cryptocurrency division, Eun Young Choi, vowed that the agency will crack down on digital asset trading platforms that commit illegal activities. The National Cryptocurrency Enforcement Team (NCET) is specifically targeting cryptocurrency exchanges that allow criminal actors to easily profit from their crimes and withdraw money, in an effort to combat crime in the sector.

Choi explained that the DOJs focus is on companies that circumvent anti-money laundering rules or know-your-customer (AML/KYC) controls. In addition to exchanges, authorities are also targeting cryptocurrency mixers who hide the transaction trail. The NCET director claims that the scope of cryptocurrency-related crimes has expanded dramatically over the past four years, and that the increased adoption of digital assets by the general public has only made matters worse.

The DOJ division is also pursuing more enforcement actions against investment scams, which Choi described as pig-killing schemes, where scammers build relationships with victims over a period of months. This phrase refers to a Chinese practice for fattening pigs for slaughter.

The US federal law enforcement agency will also be targeting theft and hacking related to decentralized finance (DeFi) platforms, particularly chain bridges that allow users to exchange multiple types of digital tokens and may be susceptible to code-related vulnerabilities.

The NCET was established by the Department of Justice in late 2021 to enforce laws within the nascent cryptocurrency industry and prevent fraud and other white-collar crimes. Eun Young Choi was appointed as the unit director in February of last year. Under the Biden administration, the federal watchdog has taken an increasingly tough approach to the digital currency sector.

Earlier this month, it was revealed that the DOJ had opened an investigation into Binance, the largest cryptocurrency exchange, due to alleged violations of sanctions against Russia.

Last month, the agency announced that it had raised around $112 million from six cryptocurrency scams, and would also be investigating failed companies like Terraform Labs and FTX. As the use of digital assets becomes more widespread, it is likely that the DOJs efforts to curb cryptocurrency-related crimes will only increase in intensity.

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US Department of Justice Ramps Up Action Against Cryptocurrency ... - The Dales Report

In the dynamic world of digital currencies, a paradigm shift is underway. The dawn of cloud mining has introduced a new way to mine cryptocurrencies, offering a more accessible and economically feasible solution. Amid this evolution, one platform stands out by redefining the standards of cryptocurrency mining: Gbitcoins. With its global reach, diverse user base, and unwavering focus on profitability, Gbitcoins is leading the way in transforming the approach to cryptocurrency mining.

Before learning more about Gbitcoins, it is essential to understand what cloud mining is and how it works. Cloud mining is a process wherein Bitcoin or other cryptocurrencies are mined using a remote data center with shared processing power. This model allows individuals to mine cryptocurrencies without managing the hardware directly.

Traditional mining requires the miner to own, operate, and maintain expensive physical hardware. These machines, paired with their significant energy consumption, can make mining a financially challenging endeavor. Cloud mining overcomes these obstacles, allowing users to rent part of the mining hardware and start mining immediately. This model democratizes the mining process, making it accessible to a wide array of individuals, regardless of their technical skills or financial capabilities.

Traditional mining, also known as hardware mining, involves a significant investment in time, money, and technical knowledge. As mentioned, one needs to buy, set up, and manage their own mining hardware, which can be an expensive and daunting task. In addition, the high energy consumption of traditional mining can lead to exorbitant electricity bills.

Alternatively, cloud mining offers a number of distinct advantages. First and foremost, it eliminates the need for upfront hardware costs. As the mining equipment is hosted in remote data centers, users are free from the burden of managing hardware and dealing with high energy costs. Furthermore, cloud mining is accessible to anyone with an internet connection, breaking down barriers to entry and making cryptocurrency mining a more inclusive endeavor.

Founded in 2016, Gbitcoins emerged as one of the first companies to provide cloud mining services, ushering in a new era in the world of cryptocurrency mining. With a vision of democratizing access to the latest technology and large industrial data centers, Gbitcoins is dedicated to ensuring that everyone can benefit from cloud mining, whether theyre using a laptop or mobile phone.

Today, after years of continuous development and innovation, Gbitcoins proudly operates five mining farms across the globe, serving members in more than 200 countries and regions. The platform has won the trust of over 490,000 users worldwide, a testament to its reliability, efficiency, and commitment to user satisfaction.

When contemplating a platform for cloud mining, one question comes to mind: why should Gbitcoins be the choice? The answer lies in the unique features and benefits it offers:

Unlike other platforms where investments can be locked for extended periods, Gbitcoins provides shorter package cycles. This flexibility allows users to enjoy quicker returns on their investments, enhancing the overall user experience.

Gbitcoins ensures its users enjoy higher profits compared to traditional mining methods. The platform leverages advanced algorithms and cutting-edge hardware to maximize mining efficiency, which translates to better returns for users.

Backing Gbitcoins is a formidable team of experts with years of experience in cryptocurrency, blockchain technology, and financial services. Their expertise ensures that the platform stays ahead of the curve, offering users the most efficient and profitable mining opportunities.

Gbitcoins is proud to serve a diverse user base spread across the globe. This diversity not only speaks volumes about the platforms reliability but also fosters a global community of like-minded individuals sharing their experiences and insights, thereby enhancing the platforms collective knowledge and strength.

Gbitcoins is transparent about its project income and profit, providing users with a clear understanding of their potential earnings. This transparency instills confidence in users, knowing that there are no hidden charges or unaccounted costs.

A unique feature of Gbitcoins is the Invite Friends plan. This program allows users to earn passive income without any investment, just by inviting their friends to join the platform. This initiative provides an additional stream of revenue, making Gbitcoins an even more attractive option for cloud mining enthusiasts.

In the vast sea of cloud mining platforms, Gbitcoins stands out. With a user-friendly interface, shorter package cycles, and higher profit margins, it has quickly become the go-to platform for both beginners and seasoned miners alike. The platforms unwavering commitment to transparency and its robust Invite Friends plan further strengthen its position as a leader in the industry.

Moreover, Gbitcoins is backed by a strong team of experts, ensuring the platform remains at the forefront of the latest technological advancements. This expertise, coupled with a diverse user base from around the world, creates a unique and profitable cloud mining ecosystem.

In an industry where transparency is of utmost importance, Gbitcoins set a high standard. It provides clear visibility of its project income and profit, ensuring users can make well-informed decisions about their investments. This openness helps build trust and confidence in the platform, creating an environment where users can feel secure about their investments.

Gbitcoins fully understands the potential risks involved in cryptocurrency mining and takes every necessary step to mitigate them. It maintains strict security protocols and leverages state-of-the-art technologies to protect users data and funds. By prioritizing security and transparency, Gbitcoins is not just a platform for cryptocurrency miningits a partner you can trust in your cryptocurrency journey.

At the end of the day, the landscape of cryptocurrency mining can be complex, involving numerous factors. Traditional mining has its share of challenges, from expensive hardware to high energy costs. However, the advent of cloud mining has revolutionized this arena, providing a far more accessible and cost-effective way to mine cryptocurrencies.

Gbitcoins, with its unique features and benefits, stands out as a distinguished platform in this sector. By choosing Gbitcoins, users are not only opting for a cloud mining platform but are also becoming part of a dynamic, global community thats at the forefront of digital currency mining.

With Gbitcoins, the complexities of cryptocurrency mining are simplified, opening the door to lucrative opportunities. So, whether youre an experienced miner or a newcomer to the field, Gbitcoins equips you with the tools, resources, and community to guide you on a profitable journey in the world of cryptocurrency mining. The future of digital currency is here, and with Gbitcoins, youre ready to be a part of it.

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Embracing the Future of Cryptocurrency with Cloud Mining and ... - Analytics Insight

In Europe, online casino gambling has been growing by double-digit percentages year-over-year for more than a decade. Furthermore, experts predict the same level of growth is expected over the next few years. A lot of people are questioning, whats driving this growth.

The reality is several things have been driving people to the internet to play online casino games of chance for real cash. For instance, technological advancements have made online casinos more accessible across Europe and in countries like India. Software developers have contributed to the growth by developing bigger and better slots with more interactive bonus features. Also, news of massive jackpot winners has prompted millions of recreational gamblers to join the fray.

Setting these things aside, the advent of cryptocurrency as a viable online casino banking option has done a lot to draw younger people to online casinos.

In the early days of cryptocurrencies like Bitcoin, online casino operators were leery about accepting crypto as a viable banking option. They just didnt feel comfortable that Bitcoin was going to survive government scrutiny across Europe.

As the months and years passed, the popularity of Bitcoin as a means of exchange grew at incredible rates. About five (5) years ago, a number of top online casino operators took note of the growth. As customer inquiries about adding Bitcoin as a banking option started flowing in, some operators took action. As fast as they could, they got their software developers on the case, developing banking platforms that could accept crypto.

Still, the number of online casinos that embraced this technology was limited. A lot of operators were unwilling to spend money on the programming process because they didnt feel the demand was significant enough.

As recently as four (4) years ago, only about 5% of all licensed online casinos in Europe accepted crypto as a banking option. Of these casinos, none of them would allow gamblers to use crypto as gambling currency. Instead, they forced crypto depositors to convert to the casinos currency, which caused confusion and problems due to valuation issues. Remember, the value of most cryptos will change by the second.

Eventually, operators started seeing the light. They were able to identify ways gamblers could benefit by using crypto, something they start promoting through marketing efforts. When astute gamblers read about the potential benefits of using crypto as a banking option, they used that as motivation to start gambling online.

Today, the landscape surrounding online casino gambling and crypto as a banking option has changed significantly. The number of online casinos that accept Bitcoin if not other cryptos has risen to about 20%. Software developers have also been busy developing crypto-only casinos, and online casino games that can be played solely with crypto. Eliminating the conversion problem has proven to be a very big deal.

Since online casinos have started promoting the benefits associated with using cryptos like Bitcoin as a viable banking option, it seems prudent to discuss those benefits.

Here are four ways online casinos players can benefit by funding their accounts with crypto:

Crypto transactions are processed through blockchains. They are processed without the inclusion of personal information like name, address TIN, and phone number. The only info listed on blockchains is transaction numbers and amounts that are furnished to senders and receivers. This establishes a very high level of anonymity, something online gamblers treasure as it allows them to avoid scrutiny over their gambling activities and possible tax ramifications.

When crypto transactions are made, they result in the immediate transfer of value. Online casinos love knowing they instantly have good funds. It allows them to quickly credit gambler accounts without worry.

When it comes time to process withdrawals, they already know they have good funds from their crypto customers. It eliminates their need to hold monies during a verification process. Therefore, they are more willing to process withdrawals in minutes, something customers love.

It costs next to nothing for two parties to transact with crypto. Since online casinos need less manpower to process crypto transactions and they dont incur fees doing so, they are more apt to charge little to no fees to customers who bank with crypto.

From a no deposit bonus to free spins, casino players love getting big extra value from casinos. Given the secure nature of cryptos, casino operators have gotten to the point they want more crypto customers. That has prompted them to offer bigger bonuses to crypto customers than the bonuses being offered to customers who use other banking options.

Conclusion: Who knows where things will go in the future? However, this much is sure. The integration of online casinos and cryptocurrencies figures to continue growing for at least the next few years.

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The Rising Popularity of Cryptocurrency for Online Casino Banking - Analytics Insight