Hidden Road Halts ByBit Access Over KYC and AML Concerns

Hidden Road Prohibits ByBit Use Due to Compliance Discrepancies

Hidden Road, a brokerage firm backed by Citadel, has recently informed its clients that they are prohibited from using the ByBit platform. This decision stems from disagreements regarding KYC (Know Your Customer) policies and AML (Anti-Money Laundering) requirements.

The disagreement arose from ByBit and Hidden Road's differing interpretations of regulatory compliance. ByBit has expressed its intention to review its operations as a brokerage to ensure adherence to industry standards.

Studies have shown that AML regulations have limited effectiveness in combating illicit financial flows, capturing less than 0.1% of crime proceeds. This has led to the emergence of services like Samurai Wallet and Monero, which provide crypto mixing and tumbling.

However, these services have faced legal scrutiny. In April 2023, US authorities detained Keonne Rodriguez and William Lonergan Hill, the creators of Samurai Wallet, for violating money laundering regulations.