Hidden Road, a prime brokerage backed by Citadel Securities, has suspended customer access to cryptocurrency trading platform Bybit, Bloomberg reported. This decision stems from concerns about Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.
What is Hidden Road?
Hidden Road is a technology-driven prime broker focused on providing clearing and financing services for traditional and digital assets. The company aims to use advanced technology and innovative solutions to optimize financial market operations, improve transaction efficiency and reduce risks.
Is there a controversy over anti-virus laundering in Bybit?
According to Bloomberg, Hidden Road decided to stop customers from using Bybit, mainly due to disagreements over KYC and AML requirements. These regulations are essential to prevent illegal activities, such as money laundering, and ensure that exchanges operate compliantly. Anonymous sources quoted by Bloomberg noted that these compliance issues have caused a big divide between the two.
Bybit’s response and compliance review
In response to these developments, Dubai-based exchange Bybit has launched a comprehensive compliance review of its prime brokerage business. According to Bloomberg, the review is aimed at ensuring compliance with relevant regulations and improving the onboarding process for clients through brokers. Nonetheless, Bybit did not comment specifically on its deal with Hidden Road.
Hidden Road eliminates legal concerns for financing?
Hidden Road is reportedly seeking $120 million in Series B equity funding. The purpose of this financing is to expand the company's prime brokerage services (including foreign exchange and digital asset markets).
Bybit withdraws Hong Kong Securities and Futures Commission compliance application
On 5/31, the Hong Kong Securities and Futures Commission also included Bybit’s application in the list of applicants whose license applications have been returned, rejected or withdrawn, indicating that Bybit has withdrawn its application for a Hong Kong license, the same as OKX. According to industry sources, the reason why many offshore exchanges gave up their Hong Kong licenses was because Hong Kong required the removal of mainland Chinese users.
(The carnival officially ends! Hong Kong Securities and Futures Commission: It will begin to blame unregistered exchanges and licenses are not guaranteed)
This article suspends customers from using Bybit, and Bybit withdraws Hong Kong applications! Bloomberg: Hidden Road suspends cooperation based on KYC and anti-money laundering factors appeared first on Chain News ABMedia.
