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Anti-spoofing tech for regulated securities. There's no rules for crypto to suggest that Coinbase needs to (or would) flag a group of individuals doing this.
by bduerst 5y ago
Anti-spoofing tech for regulated securities. There's no rules for crypto to suggest that Coinbase needs to (or would) flag a group of individuals doing this.
- JumpCrisscross 5y ago> Anti-spoofing tech for regulated securities. There's no rules for crypto to suggest that Coinbase needs to (or would) flag a group of individuals doing this. It's the same stuff that catches money laundering. Coinbase isn't exempt from anti-money laundering laws. (With respect to Coinbase not being subject to the Exchange Act, that's very much an open, if irrelevant to this discussion, question.)
- bduerst 5y agoI don't see how that is relevant here. Wash trading is market, price, and reputation manipulation, not money laundering or tax evasion. I'm not sure Coinbase's need to report money laundering applies.
- JumpCrisscross 5y ago> Wash trading is market, price, and reputation manipulation, not money laundering or tax evasion A lot of money laundering involves wash trading. That's why institutions like Coinbase have systems in place to detect it. Non-laundering wash trades would get flagged by such a system. If it were systemic, it would almost certainly merit a SAR.
- bduerst 5y ago>A lot of money laundering involves wash trading. Citation needed, because wash trading and money laundering are not mutually inclusive. There are not controls in place for money laundering that detect wash trading, because crypto is not a regulated security.