KuCoin’s $297M Settlement Marks a Turning Point in Crypto Compliance

Crypto exchange KuCoin has agreed to pay $297 million and pled guilty to operating an unlicensed money transmitting business, following allegations of widespread anti-money laundering (AML) failures and the facilitation of over $5 billion in illicit transactions. This significant development underscores the growing scrutiny of cryptocurrency platforms by U.S. regulators and law enforcement.

New FinCEN AML Rule Brings Heightened Scrutiny to Registered and Exempt Reporting Investment Advisers

On August 28, 2024, the Financial Crimes Enforcement Network (FinCEN) finalized a rule that imposes new Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) program requirements on registered investment advisers (RIAs) and exempt reporting advisers (ERAs). For the first time, these advisers will be formally recognized as “financial institutions” under the Bank Secrecy Act (BSA), and thus subject to its AML/CFT regulations. The new rule will go into effect on January 1, 2026, signaling a significant shift for both RIAs and ERAs, who will need to implement comprehensive compliance programs to meet these requirements.