👋 Welcome back to CryptoCubed!
This month’s newsletter covers major developments in the crypto world, from AML Bitcoin’s CEO facing 30 years for money laundering to Robinhood settling a $29.75M fine for compliance failures. We also dive into the growing influence of regulatory clarity on crypto market growth, the SEC’s reconsideration of crypto custody rules, and the push for national bank charters by US crypto firms. Plus, don’t miss our latest blog on European crypto AML regulations. Buckle up, it’s time for CryptoCubed.
AML Crypto CEO Faces 30 Years Behind Bars For AML Infractions
It’s really not a good look when the man behind ‘anti-money laundering’ is convicted for money laundering.
Rowland Marcus Andrade, the founder and CEO of AML Bitcoin, has been convicted of wire fraud and money laundering in a case involving millions of dollars. Andrade raised funds from investors by falsely claiming that AML Bitcoin was close to being approved for use by the Panama Canal Authority, despite no such agreement existing.
Mr. Andrade’s outrageous lies lured and scammed individuals into investing their hard-earned money into a new cryptocurrency with fabricated features.
He misled investors about the cryptocurrency’s development, business deals, and expected release. The trial revealed that Andrade diverted over $2 million for personal expenses, including luxury vehicles and properties. He also laundered the funds through various bank accounts. Andrade faces up to 30 years in prison and asset forfeiture when sentenced in July 2025. Authorities emphasized that his deceptive actions exploited investors’ trust for personal gain.
For more on this story, click here.
Robinhood Hit With Hefty Fine of $29.75M
Robinhood has agreed to pay $29.75 million to settle investigations by the Financial Industry Regulatory Authority (FINRA) over compliance failures, including violations of anti-money laundering (AML) regulations, poor trade supervision, and misleading communications. The settlement includes a $26 million fine and $3.75 million in restitution for affected customers.
FINRA found that Robinhood failed to address suspicious trading, compromised accounts, and identity verification lapses, particularly during the trading frenzy in early 2021 involving GameStop and AMC. Despite these regulatory challenges, Robinhood reported a record Q4 2024, with $1 billion in revenue, including a 200% year-over-year increase from crypto trading.
As regulators continue to tighten scrutiny on financial firms, especially those dealing with cryptocurrencies and retail trading, Robinhood may face even more challenges. Its history of compliance failures, combined with the increasing complexity of digital asset trading and its growing user base, makes it likely that Robinhood will need to implement stronger safeguards to avoid future fines or legal action. If they fail to address these concerns, they may face even harsher penalties and damage to their reputation in the long term.
For more information, click here.
Crypto Market Regulatory Pressures Fuelling Growth
A recent survey by Coinbase and EY-Parthenon reveals that regulatory clarity is the top factor driving growth in the crypto market. Of the 352 institutional investors surveyed, 86% either have exposure to digital assets or plan to invest in 2025.
Additionally, 59% intend to allocate more than 5% of their assets to crypto this year. The survey also highlights growing interest in altcoins, with 73% of investors holding tokens beyond Bitcoin and Ethereum, and 60% preferring exposure to crypto through registered vehicles like exchange-traded products.
As the regulatory environment improves, particularly with President Trump’s focus on making the U.S. the “crypto capital of the world,” institutional investment in crypto is expected to continue increasing.
For more on this, click here.
The SEC Reconsiders Crypto Custody Requirements
The U.S. Securities and Exchange Commission (SEC) is reconsidering a proposal to tighten custody requirements for cryptocurrencies, a move that reflects policy changes under the new Trump administration.
Initially proposed in February 2023 during the Biden administration, the regulation would have required registered investment advisors to store cryptocurrencies with qualified custodians and introduced stricter asset protection measures.
However, concerns from financial and crypto sectors about the feasibility of these requirements led SEC interim Chairman Mark Uyeda to direct the SEC staff to explore alternatives. This reconsideration aims to balance investor protection with financial innovation. The proposed changes have sparked debate, especially among financial institutions, with some expressing fears that stricter regulations could harm their ability to operate within the crypto space.
Under the Trump administration, the SEC has shown a more flexible approach to crypto regulation, including halting certain enforcement actions and forming a task force to examine the legal status of digital assets. The outcome of these discussions will likely shape the future of crypto regulation in the U.S.
Find more on this story here.
US Crypto Firms Push for National Bank Status
Crypto firms are reportedly seeking national bank charters under the Trump administration in an effort to gain regulatory legitimacy and expand their markets. With new banking regulators in place, there has been a surge in interest, although approvals for such charters have historically been slow and limited.
Obtaining national bank status would allow crypto firms to lower borrowing costs, access deposits, and enhance credibility, offering new business opportunities. Legal experts note that while there is growing enthusiasm among crypto firms, the process remains challenging, as only a few charters were granted in recent years.
The historically low approval rate for bank charters, with only a handful granted each year, suggests that regulators remain cautious about allowing crypto firms to operate on the same level as established banks.
This caution may be due to concerns over the stability of digital assets, potential risks to the broader financial system, and the rapid evolution of the crypto industry. Ultimately, while gaining national bank status could open new doors for crypto firms, they will likely face continued regulatory scrutiny and must prove that they can operate safely within the broader financial ecosystem.
For more on this story, click here.
Our Latest Crypto Blog: Understanding European Crypto AML Regulations
Our latest crypto guide explains how crypto AML regulation has evolved over the past few years, giving critical insights into how your crypto business can remain compliant. Here’s a quick sneak peek of the beginning:
As the cryptocurrency landscape continues to expand, so too does the scrutiny placed on it by governments and financial regulators. With Europe leading the charge in regulating the crypto space, one of the most significant developments has been the introduction of Anti-Money Laundering (AML) regulations tailored specifically to cryptocurrencies. These regulations aim to curb illicit activities like money laundering and terrorist financing, while providing a safe framework for legitimate crypto operations. This blog explores the evolution of AML European crypto regulation and how it has shaped the digital currency landscape.
Read the full piece here.
Time for Some Light-Hearted Creative Criticism?
So you’ve made it to the end of our newsletter. It’s time to enjoy a little satire, worthy reader, you’ve earned it.
🔥THE CRYPTO CUBED POEM: MARCH🔥
Our March Crypto newsletter brings an interesting turn of events,
As the CEO of AML Bitcoin was caught with no defence.
The King of AML himself can’t help but launder money,
We’re trying to be serious, but it’s pretty freaking funny.
The FATF is probably thinking what’s the bloody point,
If every single CEO is bound to disappoint?
Will there ever be a day where crypto sees no crime?
Until then, CryptoCubed will be here to dish out rhyme.
Stay tuned for our March newsletter, and have a great month!
