BitMEX charges send 'a message' to global exchanges: Crypto Mom

United States Securities and Exchange Commissioner Hester Peirce - better known as "Crypto Mom" - believes the recent action against BitMEX may be a wake up call for crypto firms.

In an interview with "Unchained Podcast" on Oct. 13, Peirce told host Laura Shin that the recent charges laid against BitMEX by the U.S. Department of Justice and the Commodity Futures Trading Commission has put the international crypto industry on notice about U.S. anti-money laundering and know your customer regulations.

"It's definitely sending a message to the crypto world that when there are U.S. users of a product or a service, there's going to be enforcement of U.S. laws."

On Oct.1, the CFTC filed a civil enforcement action against BitMEX and three of its executives for violating AML regulations.

The DOJ filed criminal charges against four executives, including founder Arthur Hayes, for violating the Bank Secrecy Act.

Such a product would offer a regulated means for institutional investors to access crypto without the risk of holding the underlying assets.

Though the Bermuda Stock Exchange announced it has approved a Bitcoin ETF in September, that's outside the SEC's jurisdiction.

The Winklevoss twins, Wilshire Phoenix, and NYSE broker Arca have submitted proposals for Bitcoin ETFs with the SEC, and the commission has consistently rejected all of them over fears of market manipulation.

Crypto Mom believes an ETF should be "Judged on its own merits" by the regulatory body.

Peirce started her second term at the SEC in August and will remain at the commission until 2025..