The crypto ecosystem has been characterized as highly volatile, which undoubtedly makes it a risky environment. However, it also offers many opportunities and benefits, which in one way or another, makes people demonstrate their ambition, reaching the point of committing illegal acts of a financial nature. If you want to do safe bitcoin trading, click at this URL.
Not only have investors been able to resort to the application of financial practices that have no legal basis, but exchange platforms have also committed failures that can later represent direct damage; it is there where the importance of carefully selecting the Exchange with which to trade you want to invest.
The intentions of regulation, control, and supervision of exchange platforms have primarily become the main objective of countries like the United States, which recently issued a set of sanctions on the crypto asset exchange platform Bittrex.
The sanctions arise from a set of elements that made the platform incur failures that, according to the policies and laws of this country, are irregular and inadequate, reaching the point of issuing an order against said Exchange.
Irregularities for which Bittrex is being investigated
It is a matter of luck when legal investigations are carried out in the United States, knowing that in the North American territory they have always been characterized by the strength of their judicial system; it is there where OFAC, the department that is in charge of supervising the assets in the foreigner sets his eyes on Bittrex.
Once the investigation began, they found a set of irregularities that said the platform had incurred, which undoubtedly represents a risk for the United States, where some of the failures range from money laundering to higher-ranking activities.
Once the faults are detected and classified, the Treasury Department is notified, assigning a penalty in the form of a fine ranging from 20 to 30 million dollars.
After an in-depth analysis of the situations in which the platform has been involved, the Security Department emphasizes the execution of norms and rules, which must be fully complied with to exercise control over the use and management of cryptocurrencies avoiding illegal activities.
The investigations yielded results of around 210,000 operations by users whose geographic location is restricted according to United States policies; such restrictions could be economic, such as in Cuba and some Arab countries.
It is there where there are movements of money that represent more than 320 billion dollars, an amount that undoubtedly caught the attention of the authorities and of anyone I know about the subject.
The need for systematized follow-up and control is the main reason the platform is fined, considering the evaluation and tracking of transactions, which could be between 10,000 to 15,000 daily.
Causes that violate Bittrex
After analyzing the platform’s operation and operation in-depth, the United States Department of Security reports that these faults could have been committed due to the platform’s inefficiencies in identifying its users.
It emphasizes everything related to the access, registration, and operation of users from various geographical locations, which is not recognized by the platform and, in turn, its link with the list of penalized by the Office of Control of Foreign Assets.
This vulnerability may be difficult to control due to the same characteristics the crypto-assets market has, where decentralization complicates the possibility of tracking transactions executed through the platform.
The opinion of these measures has been the most imposing regarding the sanctions attributed to a cryptocurrency exchange platform that operates under blockchain technology.
Bittrex’s response to sanctions
It is likely not the first or last exchange platform being investigated due to the constant struggle demonstrated during this year to maintain control and supervision over cryptographic operations.
Cryptocurrencies have positioned themselves among financial investments, despite the vulnerabilities of the crypto market during 2022.
The control and regulation entities have every right to investigate, which is why the leading players in the digital asset market are open to being evaluated and analyzed.
Users have raised the biggest annoyance due to the inconvenience generated by seeing themselves with their digital assets blocked at a particular moment.
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