Former US solicitor general claims regulators want to ‘debank’ crypto

Goldman Sachs-backed cryptocurrency custody firm BitGo is the latest cryptocurrency company to secure regulatory approval to operate across the European Union.Germany’s financial regulator, the Federal Financial Supervisory Authority (BaFin), granted BitGo Europe a Markets in Crypto-Assets Regulation (MiCA) license to provide digital asset services in the EU, the firm announced on May 12.The license allows BitGo to offer services to crypto-native firms and traditional finance institutions, including banks and asset managers within the EU.Source: BitGo“This license underscores our commitment to the highest standards of security, transparency, and trust,” BitGo Europe managing director Harald Patt said.BitGo set up the EU headquarters in 2023Founded in 2013 in Palo Alto, California, BitGo is a major platform in the cryptocurrency industry specializing in crypto custodial services, holding cryptocurrencies like Bitcoin (BTC) on behalf of its clients. BitGo’s latest regulatory milestone in Europe follows efforts to increase its presence in the EU, including establishing local headquarters in Frankfurt in 2023.Since setting up BitGo Europe in Germany, BitGo has received multiple registrations in EU states, including Italy, Spain, Poland and Greece.“With the MiCA license now secured, BitGo can operate across the entire EU under a unified, forward-looking regulatory framework,” the firm said in the announcement.“Broad range of institutional-grade solutions”BitGo did not specify the services it intends to roll out immediately under the new MiCA license.“BitGo’s MiCA licence comes at a pivotal moment as BitGo expands its product suite to offer a broad range of institutional-grade digital asset solutions,” the announcement added.Related: Tether CEO defends decision to skip MiCA registration for USDTAs of May 12, BaFin’s official records did not yet reflect BitGo’s MiCA license, showing only earlier registrations.BaFin data on BitGo’s registrations in Germany as of May 12, 2025, 8:30 am UTC. Source: BaFinCointelegraph approached BitGo for additional details on its MiCA license but did not receive a response by the time of publication.As previously mentioned, Germany has emerged as a major jurisdiction for European businesses seeking MiCA registration, with BaFin issuing licenses to several companies, including Bitpanda and Boerse Stuttgart Digital Custody, in 2025.Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

US federal prosecutors have rebutted claims they suppressed evidence in their case against the co-founders of the crypto mixing service Samourai Wallet, arguing their disclosure of a conversation with Treasury Department staff was made within the required timeframes. In a May 9 letter to a Manhattan federal court, prosecutors opposed a request for a hearing, claiming they handed over “all known substantive communications” between them and the Treasury’s Financial Crimes Enforcement Network (FinCEN) regarding Samourai “months in advance of pretrial motions and trial.”“The defendants will have seven months to make use of the information before trial,” they wrote. “Nothing more is warranted.”On May 5, Samourai co-founders Keonne Rodriguez and William Hill asked the court for a hearing, claiming that prosecutors were late to disclose that FinCEN representatives told them six months before they charged the pair that under the agency’s guidance, the service “would not qualify as a ‘Money Services Business’ requiring a FinCEN license.”However, prosecutors still charged the pair in February 2024 with conspiracy to operate an unlicensed money transmitting business and money laundering conspiracy, unsealing the charges and arresting the pair in April that year. They have both pleaded not guilty.In their letter, prosecutors argued they “acted in good faith” in disclosing the “contents of this informal conversation” between them and Kevin O’Connor, the chief of FinCEN’s Virtual Assets and Emerging Technology Section in the Enforcement and Compliance Division, and Policy Division staffer Lorena Valente.A highlighted excerpt of the prosecutors’ letter arguing that they disclosed a discussion with FinCEN on time and the discussion was an “informal conversation.” Source: PACERThey claimed O’Connor and Valente’s comments were “their individual, informal, and caveated opinion” on whether Samourai would need to register as a money transmitter under FinCEN regulations.FinCEN “did not have a sense” of broaching SamouraiThe prosecutor’s letter noted that an email from one of the prosecutors summarizing the August 2023 call with FinCEN said that because Samourai doesn’t take custody of the crypto, it “would strongly suggest that Samourai is NOT acting as an MSB [money services business].”However, it noted FinCEN staff “did not have a sense of what FinCEN would decide if this question were presented to their FinCEN policy committee.”An excerpt of an email from prosecutor Andrew Chan said FinCEN “did not have a sense” of what it would decide on Samourai. Source: CourtListenerSamourai’s lawyers had claimed that the call showed Rodriguez and Hill “were not money transmitters under FinCEN’s guidance” and that they “could not possibly be prosecuted for not having a license.”The Samourai co-founders had bid to dismiss the case in April, pointing to Deputy Attorney General Todd Blanche’s memo released that month saying the Justice Department wouldn’t prosecute crypto mixers for “unwitting violations of regulations.” In their letter, prosecutors addressed the memo, arguing the court “should not consider” it, as the memo states it “may not be relied upon to create any right or benefit” against the US or its departments.Legal Panel: XRP win leaves Ripple a ‘bad actor’ with no crypto legal precedent set 

Censorship-resistant “dark stablecoins” could come in increasing demand as governments tighten their oversight of the industry. Stablecoins have been used for various groups to store assets due to a lack of government interference; however, with regulations pending, that could soon change, Ki Young Ju, CEO of crypto analytics firm CryptoQuant, said in a May 11 X post.“Soon, any stablecoin issued by a country could face strict govt regulation, similar to traditional banks. Transfers might automatically trigger tax collection through smart contracts, and wallets could be frozen or require paperwork based on government rules,” he said.“People who used stablecoins for big international transfers might start looking for censorship-resistant dark stablecoins instead.”On the heels of US President Donald Trump’s crypto-friendly administration assuming power earlier this year, lawmakers are weighing stablecoin legislation, which seeks to regulate US stablecoins, ensuring their legal use for payments. The European Union has already brought in its Markets in Crypto-Assets (MiCA) regulation, which, among other measures, mandates that stablecoins be regulated and transparent.Source: Ki Young JuJu speculates that a dark or private stablecoin could be created as an algorithmic stablecoin, with the value maintained through algorithmic mechanisms rather than being pegged to an external asset like gold, which makes it susceptible to interference from authorities. “One possible example could be a decentralized stablecoin that follows the price of regulated coins like USDC using data oracles like Chainlink,” he said.Another way would be stablecoins issued by countries that don’t censor financial transactions, or, for example, if Tether chooses not to comply with US government regulations in the future.“USDT itself used to be considered a censorship-resistant stablecoin. If Tether chooses not to comply with US government regulations under a future Trump administration, it could become a dark stablecoin in an increasingly censored internet economy,” Ju said.Privacy technology in crypto is already being usedZcash (ZEC) and Monero (XMR) — while they aren’t stablecoins —already shield transactions and allow users to send and receive funds without revealing their transaction data on the blockchain.Related: Russia finance ministry official floats country making own stablecoins: ReportSeveral projects are also working on using similar technology for stablecoins, such as Zephyr Protocol, a Monero fork that hides transactions from being revealed on the blockchain. PARScoin also hides user identities, transaction values, and links to past transactions.The market cap of US dollar-denominated stablecoins has continued to grow, crossing $230 billion in April, a report from investment banking giant Citigroup found. That’s an increase of 54% since last year, with Tether (USDT) and USDC (USDC) dominating 90% of the market.Meanwhile, total stablecoin volumes hit $27.6 trillion in 2024, surpassing the combined volumes of Visa and Mastercard by 7.7%. Magazine: Ridiculous ‘Chinese Mint’ crypto scam, Japan dives into stablecoins: Asia Express