Anti-fraud and risk management play IdentityMind Global has been tapped to actualize Anti-Money Laundering (AML) regulatory compliance for America’s newest crypto exchange, the San Francisco-based HBUS. The move marks the latest development by upstart HBUS to position itself as a serious exchange contender in the U.S.
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IdentityMind Global to Keep HBUS in the Regulatory Daylight
HBUS, Huobi’s exclusive strategic partner in the United States, is going with anti-fraudsters IdentityMind Global to guarantee AML compliance for their fledgling exchange.
The crypto marketplace upstart, which just went fully live on July 10th, has tried to stay ahead of the curve throughout its inaugural phase. Their first major move in that vein was hiring Frank Fu as CEO. Now, on top of recently registering with the United States’ Financial Crimes Enforcement Network (FinCEN), HBUS is leveraging IdentityMind Global’s Software as a Service (SaaS) “trusted digital identities platform” to push toward the vanguard of compliance in America’s nook of the cryptoverse.
Of the move, HBUS’s lead compliance officer and general counsel Harry Zhou commented that it was a matter of not settling for lesser options, and instead reaching for the best compliance avenue the company saw available — IdentityMind 2.0:
“I was immediately struck by the fact that many legacy AML solutions were not even risk-based – which immediately was a non-starter for us – as they expose organizations to regulatory risks, loss of operational efficiencies, and money laundering. Still others were designed for traditional banking, which is not the virtual currency world in which we operate, and would require time-consuming and expensive customization.[…] I also evaluated building our own compliance platform, given my technical and legal background, but that approach would also have taken considerable time and cost, and to be honest, that’s just not our core competency. Luckily, I was attending the annual ACAMS (Association of Certified Anti-Money Laundering Specialists) conference, met with an industry associate who runs a virtual currently marketplace that uses IdentityMind Global, and quickly came to the conclusion that their new Version 2.0 platform had all the features we were looking for.”
This Version 2.0 platform offers a risk-based approach to HBUS that will allow the marketplace to more readily detect account anomalies, e.g. identity fraud. As IdentityMind CEO Garret Gafke put it:
“Version 2.0 of our platform – featuring a user-centric approach and new, optimized UI – will help HBUS maintain the integrity of their virtual currency marketplace, protect against illicit activities, and help their analysts realize greater operational efficiencies while meeting regulatory and compliance requirements.”
Comes Amid Increasing Attention on Crypto Crimes
It’s as good a time as ever for HBUS to veer hard into the regulatory daylight. That’s because authorities in the U.S. have signaled they’re bringing heightened focus to cryptocurrency-centric financial crimes in the nation.
Indeed, on July 11th, President Trump signed an executive order that established a task force to help fight against financial fraud crimes in America, with “digital currency fraud” being explicitly cited in the order as one of the types of crimes that will be coming under scrutiny. Just a few days prior, the Internal Revenue Service (IRS) announced the formation of the international J5 group that, in part, will look at how cryptocurrencies are used to facilitate money laundering and tax evasion. Before that, in April 2018 the U.S. Department of Justice (DOJ) confirmed it was looking into price manipulation in the cryptoverse.
The takeaway here? Cryptoeconomy commerce has never been under more official scrutiny in the United States. It’s that reality that makes HBUS’s embrace of IdentityMind Global not only prudent, but necessary.
What’s your take? Is AML compliance officially the name of the game in the U.S.? Let us know what you think in the comments below.
Images via Pixabay, Bitrazzi
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