Moodys, Elliptic join forces for enhanced VASP risk screening

The companies will combine their strengths to provide enhanced virtual asset service providers screening ability.

View Details

Witness in Nigerian trial against Binance accuses platform of contravening Central Bank rules

Olubukola Akinwumi, the deputy director of the Central Bank of Nigeria (CBN), accused Binance of conducting transactions reserved for authorized banks and financial institutions on Friday, according to a local media report. Akinwumis accusations were part of his testimony in the lawsuit brought by the Economic and Financial Crimes Commission (EFCC) against Binance and its […]

The post Witness in Nigerian trial against Binance accuses platform of contravening Central Bank rules appeared first on CryptoSlate.

View Details

Thailand distributing digital money to 45M citizens to boost economy

The controversial plan began as a campaign promise and will help lower-income Thais buy more.

View Details

Fractal ID postmortem ties breach to 2022 password hack

This breach highlights the ongoing challenges in maintaining data security, especially in todays centralized storage systems.

View Details

ZkSyncs Gemholic project suspected $3.5M rug pull

Community members are currently trying to trace the Gemholic contract creators address, which is supposedly funded by Binance.

View Details

Blockchain Association objects to IRS broker rule in letter

The Washington DC-based blockchain advocacy group argued the IRS' broker rule provisions violate the Paperwork Reduction Act.

View Details

Bitcoin's Role In Defending Democracy In Nicaragua With Félix Maradiaga

Pro-democracy activists, such as those in Nicaragua, are facing financial repression at the hands of the countrys autocratic leadership. Bitcoin is a tool to help circumvent this repression.

View Details

Institutional DeFi players will bring commercial real estate onchain: KPMG exec

DeFi activity from institutions would be more permissioned as market participants will want to know who theyre dealing with, KPMGs Kunal Bhasin said.

View Details

European Commission selects Iota Web3 ID for blockchain sandbox

The European Commissions selection of Iotas Web3 ID solution highlights the solutions potential to revolutionize KYC processes using distributed ledger technology and tokenization on a mass scale.

View Details

Coinbase sees infinite interoperability potential with Ethereum and USDC

Coinbase head of tokenization Anthony Bassili described plans for its Base network at TokenizeThis 2024 in Miami.

View Details

Citadel-backed Hidden Road halts ByBit access for clients

Hidden Road cited Know Your Customer verification policies and concerns surrounding Anti-Money Laundering regulations on the ByBit exchange.

View Details

Muinmos and Blade Labs Want to Simplify the KYC Process in Web3

Muinmos andBlade Labs have partnered to set new compliance standards in the Web3 space byintegrating Muinmos' Client Onboarding Platform into Blade Labs' Digital AssetPlatform. The collaboration aims to simplify the onboarding process andaddress the challenges faced by compliance officers in the digital assetslandscape.

Muinmos, Blade LabsPartner to Standardize Web3 Compliance

As theprovider of automated regulatory technology, Munimos offers the Client Onboarding platform with advanced AI capabilities that streamline the clientonboarding process, including precise investor classification.

Thetechnology enables enterprises and financial institutions to instantlydetermine whether they can onboard clients and provide them with specific services and products in a given country while ensuring continuous updates ofregulations, client information, and risk profiles.

Blade Labs,a fintech solution provider focusing on multi-jurisdictional web3 technologysolutions, has established its position in the industry, working with brandssuch as Diamond Standard, Slimeworld, Sun Dao, Karate Combat, and LG Art Labs.

Ourobjective is to simplify the KYC process and make it uniform, Blade Labs' CEO,Sami Mian, explained. This will improve the user experience and considerablyreduce operational costs.

Integrating Muinmos' technology into Blade Labs' fintech solutions sets newsecurity and compliance standards in the digital asset space, simplifyingcompliance procedures and establishing a unified standard for all vendors.

Two monthsago, Muinmos partnered with UAE-based financial technology provider ZagTrader,which integrated the company's RegTech solution into its platform. In themeantime, FX Back Office also joined the growing list of Muinmos partners tooffer a unified onboarding, KYC, and CRM solution for FX providers.

A Landscape withChallenges

The digitalassets landscape presents numerous challenges for compliance officers,including a fragmented regulatory space, regulatory arbitrage, lack ofstandardized data, anti-money laundering compliance, data privacy and security,and taxation and reporting issues.

Overcomingthe regulatory challenges in the digital assets landscape requires acollaborative effort among industry players, regulators, and other stakeholdersto establish harmonized frameworks, foster transparency, and facilitatecross-border cooperation.

Ourcombined technology will enable enterprises to engage more efficiently andsecurely with digital assets while setting a new standard for compliance in thedigital asset ecosystem, commented Muinmos' Founder andCEO, Remonda Kirketerp-Møller. The goal is to strike a balance betweenfostering innovation and ensuring the stability, security, and integrity of thedigital asset space.

View Details

Coinbase under fire for massive data breach affecting nearly 69,461 users

Coinbase is facing sharp criticism and regulatory pressure after confirming a significant data breach that exposed personal information of nearly 70,000 users. According to a filing with the Maine Attorney General’s Office, the breach affected 69,461 individuals, of whom 217 were residents of Maine. The exchange also stated that the compromise affected less than 1% […]

The post Coinbase under fire for massive data breach affecting nearly 69,461 users appeared first on CryptoSlate.

View Details

Binance Implements Mandatory Identity Verification (KYC) Requirements

Binance has implemented KYC requirements for all sub-accounts created under its Link Program, with non-compliant sub-accounts facing restrictions and eventual account suspension. (Read More)

View Details

Binance Sets Mandatory ID Verification For Users Amid Regulatory Shifts

Binance, the popular cryptocurrency exchange known all over the world has made a remarkable step to improve user security and compliance with the regulations; the company declared that mandatory identity verification will be established for all users. This comes in the wake of growing regulations in different jurisdictions, particularly amidst allegations of money laundering and […]

View Details

The KYC/AML Procedure at StealthEX

Explore StealthEX's approach to KYC/AML procedures, ensuring secure, non-custodial crypto swaps without mandatory registration, except in rare, suspicious cases.

View Details

Binance Strengthens Compliance in India with Mandatory KYC Re-verification

View Details

DeFi Execs Argue KYC as Solution to Combat Money Laundering in the Industry

DeFi executives at the WOW Summit in Hong Kong endorse KYC as a solution to tackle AML issues and combat hackers laundering stolen funds into clean money. However, there are concerns that KYC alone will not solve all AML problems and that different mechanisms should be used for different solutions. (Read More)

View Details

The KYC and AML Challenges of Cryptocurrency Exchanges: Solutions and Best Practices

<p class="MsoNormal">The rise of cryptocurrency has heralded the dawn of a new age in digital finance. However, with the advent of this new technology, new challenges have emerged that conventional finance has not seen before. Among these difficulties are the Know Your Customer (KYC) and Anti-Money Laundering (AML) laws, which cryptocurrency exchanges must follow. </p><p class="MsoNormal">This article will look at the KYC and AML issues that cryptocurrency exchanges encounter, as well as solutions and best practices for dealing with them.</p><p class="MsoNormal">KYC Obstacles</p><p class="MsoNormal">KYC regulations have been put in place to aid in the prevention of identification fraud, financial crimes, and money laundering. These regulations require financial institutions to verify their customers' identities before allowing them to open an account or conduct transactions.</p><p class="MsoNormal">However, the anonymous nature of cryptocurrency transactions makes it difficult to successfully execute KYC regulations.</p><p class="MsoNormal">The lack of a standard identification procedure is one of the most significant KYC challenges that cryptocurrency exchanges encounter. Traditional banking organizations verify their customers' identities by using government-issued identification, such as a passport or driver's license. </p><p class="MsoNormal">Because many of their customers may not have a government-issued ID, cryptocurrency exchanges must use other ways to validate identities.</p><p class="MsoNormal">Another issue is that many cryptocurrency exchanges are global, which means they must adhere to various KYC laws in different countries. As a result, it may be difficult for exchanges to implement a consistent KYC process for all of their clients.</p><p class="MsoNormal">KYC Challenges: Solutions and Best Practices</p><p class="MsoNormal">To address the challenges posed by KYC laws, cryptocurrency exchanges can employ a variety of solutions and best practices. To begin, exchanges should use a variety of ways to verify customer identities. This could include combining government-issued identification, biometric data, and social media accounts.</p><p class="MsoNormal">Exchanges should also think about implementing a risk-based KYC strategy. This implies that different levels of verification should be used depending on the customer's risk level. </p><p class="MsoNormal">A customer opening a small account and making small transactions, for example, may not require the same degree of verification as a customer opening a large account and making large transactions.</p><p class="MsoNormal">Finally, exchanges should remain current on the newest KYC regulations in various countries. This can be accomplished by employing KYC compliance experts or by using third-party KYC verification services.</p><p class="MsoNormal">Establishing a Common Framework</p><p class="MsoNormal">The regulatory landscape for KYC varies widely across different jurisdictions, which can create challenges for financial institutions operating across multiple regions. As such, there are many advantages to <a href="https://www.financemagnates.com/fintech/education-centre/digital-identity-solutions-for-financial-services/" target="_blank" rel="follow">establishing a common regulatory framework for KYC</a>.</p><p class="MsoNormal">Increased Efficiency</p><p class="MsoNormal">One of the primary advantages of a common regulatory framework for KYC is increased efficiency. When financial institutions are required to comply with different KYC regulations in each jurisdiction they operate in, it can be time-consuming and costly. </p><p class="MsoNormal">By having such a system in place, the process would surely be more streamlined while also being able to reduce the administrative burden for financial institutions, allowing them to devote more time and resources to other areas of their business.</p><p class="MsoNormal">Improved Consistency</p><p class="MsoNormal">A common regulatory framework for KYC would improve consistency in the application of these regulations as it would ensure that KYC requirements are consistent across jurisdictions, and reduce risks. </p><p class="MsoNormal">When regulations vary widely between jurisdictions, financial institutions may struggle to interpret and implement them correctly. This can lead to inconsistencies in the KYC process, which can create vulnerabilities for money laundering and other financial crimes.</p><p class="MsoNormal">Better Protection against Financial Crime</p><p class="MsoNormal">Financial criminals often exploit regulatory differences between jurisdictions to move money across borders and avoid detection. </p><p class="MsoNormal">A common framework would make it more difficult for criminals to exploit these differences, as KYC requirements would be more consistent and difficult to circumvent. This would help to prevent money laundering, terrorist financing, and other financial crimes.</p><p class="MsoNormal">Reduced Compliance Costs</p><p class="MsoNormal">Establishing a common regulatory framework for KYC would help to reduce compliance costs for financial institutions. </p><p class="MsoNormal">Compliance with KYC regulations can be costly, particularly for smaller institutions that may lack the resources to invest in sophisticated compliance programs.</p><p class="MsoNormal">Developing a joint set of rules would reduce the compliance burden by providing a standardized set of regulations that financial institutions could comply with across multiple jurisdictions.</p><p class="MsoNormal">Improved Customer Experience</p><p class="MsoNormal">Finally, it would also improve the customer experience. When financial institutions are required to comply with different KYC regulations in each jurisdiction, it can be confusing and frustrating for customers. As such, it would simplify the process for customers, allowing them to more easily open accounts and access financial services across multiple jurisdictions.</p><p class="MsoNormal">AML Difficulties</p><p class="MsoNormal">Money laundering and terrorist financing are both prevented by AML laws. Financial institutions are required by these regulations to recognize and report suspicious transactions to the appropriate authorities. </p><p class="MsoNormal">However, the anonymous nature of cryptocurrency transactions makes it difficult to successfully execute AML regulations.</p><p class="MsoNormal">The absence of transparency in transactions is one of the most significant AML challenges that cryptocurrency exchanges confront. </p><p class="MsoNormal">Although cryptocurrency transactions are documented on a public ledger, the identities of those engaged remain anonymous. This makes identifying and reporting suspicious transactions challenging for exchanges.</p><p class="MsoNormal">Another issue is that many cryptocurrency exchanges are uncontrolled. This means they are exempt from AML regulations, making it simpler for criminals to use these exchanges to launder money.</p><p class="MsoNormal">AML Problems: Solutions and Best Practices</p><p class="MsoNormal">To address the challenges posed by AML laws, cryptocurrency exchanges can employ a variety of solutions and best practices. To begin, exchanges should put in place transaction monitoring tools that can detect suspicious transactions. </p><p class="MsoNormal">To identify potential money laundering or terrorist financing activities, these systems should use a mix of machine learning and human expertise.</p><p class="MsoNormal">Exchanges should also use blockchain analysis tools to track down the origins of trades. This can help exchanges identify the parties engaged in a transaction and assess the transaction's risk level.</p><p class="MsoNormal">Finally, exchanges should think about adopting a risk-based AML strategy. This implies that various levels of AML controls should be used by exchanges depending on the risk level of the customer. </p><p class="MsoNormal">A customer who wants to open a small account and make small transactions, for example, may not require the same degree of AML controls as someone who wants to open a large account and make large transactions.</p><p class="MsoNormal">Exchanges should also think about collaborating with AML compliance experts and other financial organizations to share information and best practices. This can help ensure that the exchange is up to date with the most recent AML regulations and can effectively spot and report suspicious transactions.</p><p class="MsoNormal">Conclusion</p><p class="MsoNormal">KYC and AML laws are critical in the cryptocurrency business for preventing financial crimes, identity fraud, and money laundering. However, due to the anonymity of transactions and the lack of standard identification procedures, implementing these regulations is difficult.</p><p class="MsoNormal">To address these issues, cryptocurrency exchanges can use a risk-based approach to KYC and AML, stay up to date on the latest regulations, implement transaction monitoring systems and blockchain analysis tools, and collaborate with AML compliance experts and other financial institutions.</p><p class="MsoNormal">Cryptocurrency exchanges can comply with KYC and AML regulations while improving their general security and trustworthiness by adopting these solutions and best practices. </p><p class="MsoNormal">This, in turn, can aid in the development and acceptance of cryptocurrencies as a legitimate means of financial transaction.</p> This article was written by Finance Magnates Staff at www.financemagnates.com.

View Details

DeFi KYC: Not an issue as ‘99% have nothing to hide,’ industry execs say

DeFi execs at a WOW Summit panel argued that implementing “Know Your Customer” (KYC) measures will tackle the “biggest issue” in decentralized finance (DeFi), which is hackers laundering millions of stolen funds into “clean money.” During a panel session at the World of Web3 Summit (WOW) in Hong Kong on March 29, titled ‘Blockchain Security [...]

The post DeFi KYC: Not an issue as ‘99% have nothing to hide,’ industry execs say appeared first on Crypto Breaking News.

View Details