ILLICIT CRYPTO ACTIVITIES: HUOBI LAUNCHES A WATCHDOG PROJECT

As the adoption of cryptocurrency increases globally, there is a need to exercise caution in a way to prevent fraudulent activities in the exchange platform.

There has been news of hacks, theft and many other activities that resulted in people losing their funds in exchanges and blockchains.

Before we go into what Huobi has for us on this regard, let’s look at the hack or data compromise that has taken place already around the world.

Time will fail us to check other years, but the above is enough proving that something dirty can happen in the crypto space if adequate measures are not put in place to prevent such. Let’s look at what Huobi offer.

On April 15, 2020, Huobi announced the launch of Star Atlas. Star Atlas is a proprietary on-chain analytics tool, designed to monitor all on-chain crypto transactions happening in the exchange platform. It has the built-in ability to dictate illicit transactions in the platform.

The product aims at creating a safer and secure crypto trading environment, thus eliminating fears from regulators of the sector. With this tool onboard, criminal manipulations are under check, giving users the confidence that their money is safe.

In order to work under the policy governing the blockchain technology, Huobi aligns herself with the requirements of global financial watchdogs. In addition, they are making necessary efforts to work in partnership with regulators, geared at obtaining necessary licenses that complies with local KYC and AML requirements on all markets it operates in.

According to Huobi’s press release,

The launch of Star Atlas underscores Huobi’s efforts to expand its security measures beyond local requirements and contribute to the fight against nefarious uses of cryptocurrencies on a global scale.

Ciara Sun, VP of Global Business of Huobi Group had this to say:

It’s estimated that only a small percentage of cryptocurrency transactions are illicit, but any incident—regardless of size—is a stain on the entire industry. As one of the most active crypto exchanges on the market, we see it as our responsibility to take a leading role in preventing the minority of bad actors from ruining it for the vast majority that follows the rules.

*How Star Atlas Can Protect the Blockchain

Star Atlas is a new security tool that is designed to secure the blockchain. It does this by creating a more robust transparency and monitor all transactions in the blockchain, thus detecting crimes like fraud, money laundering, and other illicit activities.

Apart from monitoring, Atlas gives analysis of the activities that happens on-chain. This is to say that any activity that takes place on the blockchain can be viewed through Atlas to ascertain if there is any fraudulent act onboard.

To ensure privacy in the use of the blockchain, Atlas ensures that absolute anonymity in its operations. This enable users to go about their business without fear of being monitored by criminals.

More on this can be seen here.

What are your thoughts about Atlas? Could it be the security tool we have been waiting for to ensure a crime free digital assets exchange platform?

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Please air out your thoughts on the comment section.
Thank you for reading!YEAR MONTH AMOUNT STOLEN EXCHANGE
2019 November 342,000 ETH Upbit
2019 December $500,000 VinDax
2019 July $100,000,000 Bitpoint
2019 June 9.3 million XRP Bitrue
2019 July 23.2 Million XRP GateHub
2019 May 7,000 BTC Binance
2019 March $7 million DragonEx
2019 April 3 million EOS, 20 millionXRP Bithumb
2019 January 1,675 ETH Cryptopia
2020 February 19,390 ETH Cryptopia