Peer-to-peer cryptocurrency marketplace Paxful has been ordered to pay approximately $4 million in penalties following an investigation into systemic compliance failures. Regulators alleged that the platform failed to implement adequate anti-money laundering (AML) and ‘know your customer’ (KYC) protocols, allowing the service to be exploited for illicit activities. Specifically, authorities highlighted that the exchange was used to process transactions linked to money laundering and prostitution rings. This settlement underscores the increasing pressure from global financial regulators on cryptocurrency exchanges to maintain rigorous oversight of their users’ financial activities. As part of the settlement, Paxful is required to enhance its monitoring systems and ensure stricter adherence to federal financial regulations to prevent future misuse of its platform.
Source: Bitcoin Exchange Paxful Must Pay $4 Million Over Prostitution, Money Laundering Charges
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