Cryptocurrency, blockchain, and web3 compliance are in their next levels of evolution in the adoption process. So much so that the current global discussion on what they are and how best they fit into humanity’s ecosystem.
This discussion is driven primarily by the existence or its lack of compliance processes and procedures.
The digital asset space has a long way to go as far as compliance is concerned.
It doesn’t mean they have not attempted to get the ball rolling in that direction.
Brian Reisbeck and his team of miracle workers at Robinhood tried it, and guess what?
Now, Brian has moved to the compliance world full time at Coinme to change the world by implementing measures that could see cryptocurrencies and web3 technologies in every household.
Understanding the Compliance Odyssey
The digital asset space is one where the technologies that drive it are opposed to centralization.
So much so that certain classes within the space will ultimately be difficult to keep tabs on.
That doesn’t mean that the pseudonymous aspects of the industry can’t get subjected to scrutiny.
We must handle basic level compliance procedures first. Emerging technologies can do the rest.
After all, we built the industry on ideas!
We had a fireside chat with Brian Reisbeck, who spoke about compliance and everything else.
We had a blast, and we hope you would too.
Brian Reisbeck Chief Compliance Officer Coinme
What are the various compliance issues within the United States that the crypto community faces?
There are many changes on the horizon for the industry as we see wider adoption of crypto across the globe and a more mature marketplace.
Regulations can change overnight. I expect to see new regulatory tax reporting rules for customers and companies alike and more concrete laws regarding money laundering to identify and prevent it more quickly.
Additionally, it’s becoming increasingly more important than ever to continue to know who is transacting with us. Organizations have to have the ability to comply with regulations as they happen quickly, so we remain ahead of the curve.
Congratulations on your recent appointment as the Chief Compliance Officer at Coinme! What are your plans for your role in the company?
I am eager to apply my knowledge and experience to help the company further elevate our mission in providing a trusted and accessible way to purchase digital currency for our customers.
The ultimate goal is to continue driving the company to service a segment of the market that is unbanked/underbanked.
This was one of the key things that attracted me to Coinme because it gives crypto access to people who do not utilize traditional financial services systems.
Related: Coinme Talks to us about their New Partnership with Moneygram
Can you tell us about your experience in launching the crypto trading platform at Robinhood?
Our compliance team at Robinhood was told that we would be launching a crypto product within a month. This made for a very exciting time.
While this was my first foray into crypto compliance, having been in the highly regulated broker dealer space gave our team the tools and knowledge needed to quickly ramp up this functionality.
I learned a lot in a very small time frame in that role, which pushed me to gain more knowledge on crypto and the industry.
Before that I had only been an investor in the crypto space. I took this knowledge into my future positions, including the one here at Coinme.
Related: Free Crypto Trading App Robinhood Available in Alaska and Oklahoma
What are the benefits of a company adhering to crypto compliance?
Compliance is a critical component of crypto, and it helps with the sustainability of the business.
Adhering to compliance means the government will not shut the company down for not following regulations.
In addition, being aware of constantly changing rules helps ensure the safety of customers and their digital wallets.
How can key players within the crypto space create a framework for the successful implementation of compliance activities?
The first step is to collaborate with regulators from day one.
That’s something Coinme has done since the inception of the business.
In each state we operate in, we work closely with regulators to ensure the company is compliant and licensed to do business in that particular state.
We have consumer safety and security as our top priority.
If more companies followed suit in the industry, I think it would benefit all – the government, crypto companies and consumers.
Can you tell us about your journey into crypto technologies?
I was new to the crypto industry when I started Robinhood.
So I had to learn everything I could about crypto and the regulatory landscape.
I had to stay aware of the news landscape, and government agencies’ directives were as far as the ever-changing compliance element.
How can money laundering be prevented using compliance best practices?
Adhering to AML practices and standards, including the extensive monitoring of customer transactions, is a good practice.
Certain transactions are flagged, and you have to follow through with investigations.
Depending on the outcome of the inquiry, the organization could freeze accounts or some additional information needed. Doing these actions is the best way to prevent money laundering on a financial network.
Are the days of the wild-west of crypto ending?
This is a tough question and if I knew the answer I would be an extremely wealthy man.
My personal belief is the core digital asset markets will become more regulated as agencies and stakeholders become more informed about how crypto currencies operate.
That said, I think crypto spurs creativity that leads to other markets and/or products forming that initially would have less regulation. Currently a good example of this would be the NFT space.
What are your thoughts on Biden’s recent executive order?
The reception from the crypto markets, in general, seemed optimistic as they see this order as the beginning of the roadmap to creating the infrastructure to a more robust regulatory framework for cryptocurrency.
I remain neutral on it as I see this executive order as primarily exploratory in its current state.
But obviously, this could go either way based on the methods they are using to investigate the use case for cryptocurrency and the findings from this inquiry.
I hope that this clarifies the number of current issues in the industry by not trying to fit cryptocurrency regulation into existing financial industry laws that, in some cases, were more dated.
Related: US President Joe Biden’s Crypto Executive Order- What Are The Implications? We Talk to 31 Crypto Heavy Hitters!