Hidden Road, a brokerage firm backed by Citadel, has prohibited its clients from using ByBit due to disagreements regarding KYC policies and AML requirements. Clients were informed of this decision several weeks ago.
This seems to have arisen from the fact that Hidden Road and ByBit could not agree on several issues relating to regulation. In this regard, ByBit said that it intended to review its operations as a brokerage platform to ensure compliance with standard regulations.
A study by the Policy Design and Practice journal revealed that AML regulations are ineffective in reducing illicit financial flows, forming less than 0.1% of the crime proceeds.
As a result, measures to avoid such regulations have led to the provision of services such as Samurai Wallet and Monero, which provide users with crypto mixing and crypto tumbling services. However, all these services have come under legal scrutiny in the past.
In April this year, the U.S. authorities detained Keonne Rodriguez and William Lonergan Hill, the creators of the Samurai Wallet service, for violating money laundering rules.
