Hidden Road Halts Client Access to Bybit Over KYC and AML Disagreements- Bloomberg
Hidden Road, a prime brokerage backed by Citadel Securities, has suspended client access to the cryptocurrency trading platform Bybit due to disagreements over know-your-customer (KYC) and anti-money laundering (AML) requirements.
According to Bloomberg , Bybit is undergoing a comprehensive compliance review to address these concerns.
Prime brokerage Hidden Road will stop offering clients access to crypto exchange Bybit after the two firms disagreed on KYC and AML requirements https://t.co/oPD4umtcmx
— Bloomberg Asia (@BloombergAsia) May 29, 2024
According to sources familiar with the matter, Citadel Securities-backed prime brokerage firm Hidden Road has stopped offering clients access to the cryptocurrency trading platform Bybit.
According to a Bloomberg report , Hidden Road informed clients about the decision to prevent access to Bybit a few weeks ago. The exact disagreement between the two companies remains unclear.
In response, Bybit has initiated a “comprehensive compliance review” of its prime brokerage business. Regulators have tightened scrutiny over crypto exchanges, especially following Binance and CZ’s agreement with the US Department of Justice over violations of AML and sanctions laws.
After Binance’s historic $4.3 billion settlement with US authorities last year, the crypto exchange asked prime brokers, including Hidden Road and FalconX, to run more stringent checks to keep US investors off the exchange. A Bybit spokesperson stated,
“Bybit will not comment on specific inquiries related to counterparties at this time. However, the company is committed to transparency and will provide further updates as the review progresses.”
While the issue has only impacted some users, it has caused dissatisfaction
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