BaFin orders Bitcoin Group’s subsidiary to improve anti-money laundering measures

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29th November 2023 – (Frankfurt) Germany’s financial regulator, BaFin, has instructed a subsidiary of Bitcoin Group (ADE) to address deficiencies in its internal anti-money laundering (AML) measures. In a notice issued to the group’s Futurum Bank subsidiary in October and made public on Tuesday, BaFin highlighted “serious deficits” in internal security protocols, due diligence obligations, and the system for reporting suspicious activities.

Bitcoin Group responded on Wednesday, stating that it is taking steps to rectify the identified shortcomings, according to Reuters. The company emphasized that there are currently no indications of any violations of money laundering and terrorist financing laws within the Bitcoin Group.

Bitcoin Group made headlines in the past when it announced the acquisition of Bankhaus von der Heydt, based in Munich. The acquisition of this long-established bank garnered attention and demonstrated Bitcoin Group’s expansion into the traditional banking sector.

BaFin has maintained a strict stance on cryptocurrencies, granting digital asset licenses to only a select few companies. Despite being one of the first regulatory bodies to implement a comprehensive approval program for digital assets, BaFin has remained cautious in granting licenses in the crypto industry.

The regulatory scrutiny on AML measures within the crypto sector has been increasing globally. Authorities are keen to ensure that cryptocurrencies are not being exploited for illicit activities such as money laundering and terrorist financing. By imposing stricter regulations and oversight, regulators aim to mitigate the risks associated with virtual assets and promote a safer financial ecosystem.