According to CipherTrace’s Spring 2020 Cryptocurrency Anti-Money Laundering and Crime Report, criminals netted just under USD 1.4 Billion from various crypto-related thefts, hacks and frauds in the first five months of 2020. Key data on crypto crimes and trends from the report will have regulatory repercussions for VASPs (Virtual Asset Service Providers) and other financial institutions.
Revealing that 74% of bitcoin payments between exchanges are cross border, the report has underscored the urgency for global AML (Anti-Money Laundering) standards. The abundance of cross-border transactions highlights the need for exchanges to adopt appropriate cross-border controls to ensure AML and CTF (Counter-Terrorism Financing) compliance.
US Regulator FinCEN’s Director Kenneth Blanco has warned that criminals are “working to undermine KYC (Know-Your-Customer) processes in the remote environment. Virtual currency businesses should remain vigilant against attacks targeting their onboarding and authentication processes.”
In the wake of the global Financial Action Task Force (FATF) Travel Rule regulations on virtual currencies, where all crypto transactions above a certain amount must be accompanied by identifying information.
Protecting the Interests of All Stakeholders
Speaking with blockchain service provider ChainUP’s CEO and founder, Zhong Gengfa, he believed that in the long run, “tightening measures are good for the industry. Regulations are absolutely necessary to protect the interests of all stakeholders in this space. As digital tokens gain mainstream momentum and adoption, this is how we gain market confidence.”
For more info check out: https://medium.com/@theBitChick/compliance-is-how-we-gain-market-confidence-88084064001e