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Money laundering: Sensible Regulation of Cryptocurrencies is progressing

The Financial Action Task Force (FATF) published a draft, according to new guidelines for trading crypto-currencies decided to be. The FATF currently consists of 38 countries and two international organizations, including Germany and the European Commission. Indirectly, the current designs do, however, have more than 180 States effects. The aim of the regulation is the prevention of money laundering and the financing of terrorism. The many States set a Phase of the ban, are now increasingly on legal regulation as a means of control.

The American company Chainalysis has focused on the creation of transparency is specialized and in the course of the deliberations of the FATF adjustments in its Compliance solutions. Now, the transaction monitoring in real time for ten Cryptocurrencies. First of all, developed the company, based in Copenhagen and New York City, the product Chainalysis KYT (Know Your Transaction) to Bitcoin (BTC).

The Compliance solution for anti-money laundering is used by more than 110 companies in the crypto-currency industry and financial institutions in 36 countries worldwide. In addition, the System is used for real-time tracking for law enforcement authorities to track crime in the digital world. The software could do more than identity up to 3,500 illegal or fraudulent activities. Including, among other things, Darknet market places, and large scams.

The old song: crypto-currencies promote money laundering

Still, the Belief that crypto-currencies like Bitcoin, are particularly well suited for illegal transactions. This is not the case, the case of the Silk Road. Even then, authorities were able to make it through meticulous Track of the transactions, the men behind the thing.

Money is based on trust. This is an old, even if the correct statement. This applies also, if not more, for crypto-currencies. In the field of cryptocurrencies, this trust is created through transparency, which, in turn, is a basic idea of the Blockchain technology.

The global regulation of crypto-currencies is inevitable, so this really boundless financial system acceptance in the Mainstream,

Jonathan Levin, co-founder and COO of Chainalysis said.

About a year ago, we decided to develop our technology from scratch, in order to support more block chains. We can now add faster currencies new Crypto, what our customers are an important factor in the fulfilment of regulatory requirements.

It remains to be hoped that the efforts of Chainalysis carry in fact, the crypto-adaptation in the Mainstream.

About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.