DACX- Anti Money Laundering Measures and Access of Becoming Securities

Money Launderingin digital form is a completely new term of money laundering. Its often refers electronic money laundering, sometimes it is called Transaction Laundering. It is the most common, but less applied method of money laundering. It is a very easy processed job where anyone can show an approved credential and do some unknown transaction from the basis of merchant’s payment documents.

It is the system of hiding the base of digital assets earned illegally by sending it through a complex Chronology of tumblers as well as exchanges. The overall strategy of this process brings back the money to the launderer in an anonymous and round way. Money laundering happens on digital assets exchanges when Businessman intentionally lose digital assets on trades while intentionally allowing other traders to recover or get or some conditions compensate the lost trades.

Lack of Compliance as well as the shutdown of Regulatory Risk may increase the trend of Digital money laundering. There should be a proper guide line for different agreements. Without a proper agreement or a written down material, there will not be any transaction should be made. Every agreement should be sent to necessary sector for recheck before making any small transaction, let alone the big one. If there is a failure in the agreement or necessary individual does not know about certain conditions, then there will be significant hit on the exchange.

Moreover, if there is no regulatory commission to fix the technical support or monitor the sectors of transaction, significant loss can occur in short period of business. Meanwhile,potemtial customer may retrieve themselves back from the business. Company may face major casualties in terms of loss in the near future. For example, EtherDelta fails to comply and has hit some exchanges in general, has been charged by the Securities and Exchange Commission whereas DACX is a token based platform. They do not want any scandal. They put strong compliance and regulatory commission to avoid such objection not only from the clients but also from any regulatory agencies.

There is test know as “Howey test”, created by Supreme Court, there are certain transactions can claim themselves as investment contracts. . If so, then according to Securities Act of 1933 and the Securities Exchange Act of 1934-

_“This type of transaction will be considered as securities and are subjected for disclosure and registration”_

Not only are that, for readers kind information, there transaction that are called security if certain requirement are to be fulfilled.

Firstly, there should be an investment of money. Without money, no investment will claim themselves as securities. Secondly, expectation of profits is another condition to form an investment into securities. Thirdly, a common enterprise should be there for the help of investment purpose. Multiple platform of a single investment may create huge suspicion. At last it has to be affirmative that there are efforts of a promoter or third party. If all the conditions are fulfilled, then the investment will be called as securities. Since DACX is based on investment and all the criteria of becoming an investment is fulfilled by it.