the The regulatory Start-up Coinfirm conducted a study of 216 Bitcoin exchanges. She comes to the conclusion that more than half of the trading platforms, has no, or no comprehensive regulatory guidelines. So full 69 percent of the surveyed companies pull no full KYC procedures. 74 per cent have deficiencies in the fight against money laundering. Industry size Binance is particularly negative. How much risk we take in the name of anonymity?
Polina Khubbeeva
At the 2. April 2019BTC$4.777,33 15.54%part Facebook Twitter LinkedIn xing mail
Coinfirm, a London-based crypto Start-up, published in March 2019 with a comprehensive Report for the internal safety and transparency policy of crypto-exchanges.
From this it is apparent that most of the 216 studied Bitcoin exchanges in terms of money laundering prevention (“Anti-Money Laundering (AML)”) and users information (“Know-Your-Customer (KYC)”) no or insufficient policies and process structures.
KYC as money laundering prevention
69 percent of the exchanges do not have “complete and transparent” KYC procedures. KYC is especially relevant if companies want to protect themselves by legitimating checks of their customers legally. International law, such as the Anti-money laundering Directive of the EU, the framework is in place for KYC measures.
Coinfirm certified, only 26 percent of under the magnifying glass taken exchanges a “high” Level of structures to prevent money laundering. Among them, Coinbase, Coinsquare and Gemini are, however. They have licenses and strict regulations in the area of KYC/AML.
The rest of the trading platforms for Bitcoin & co. operate, ultimately, in legal grey zones. In principle, the bandwidth between complete deregulation and conscientious review of the measures is very high.
Binance in criticism
a Particularly negative impact Binance. The largest crypto exchange in the world, grants its users a high degree of anonymity. She takes the risk of criminal activity on their platform. As an example, Coinbase announced the hiring, to Transfers under the two BTC without user verification.
Meanwhile, Binance strives to fulfil their obligations and improvements in the area of security. On Tuesday, the 26. In March, the company announced that in the future, with the Compliance Management and regulatory platform identity mind to cooperate.
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