How Do KYC and AML Procedures in the Crypto Space Help Prevent Fraud? | HackerNoon

  • 📰 hackernoon
  • ⏱ Reading Time:
  • 59 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 51%

United States Headlines News

United States Latest News,United States Headlines

Early November was not an easy time in Hong Kong’s office of a global cryptocurrency exchange, FTX. - kyc amlcompliance

After battling their competitor’s comments on social media on November 6, the company paused withdrawals on November 8. In the next two days, after hearing a vague comment from their colleagues in the Bahamas, the Asia-based employees were told they did not need to come to the office anymore. This fiasco of FTX’s management and their implementation of the Anti-Money Laundering procedures became a sensitive topic in the community ever since.

How Alameda Research and FTX could both be involved in transacting users’ funds while being completely separate entities is now only part of history that we might never get to understand. KMPG published their version of what happened in this comprehensiveWhat personally surprised me the most in this heinous case was the fact that FTX was admitted to have a robust due diligence when it was evaluated by investors, such as Ontario Teachers’ Pension Plan, Sequoia Capital, and Temasek.

Secondly, implementing wallet and transaction checks helps avoid having assets of certain customers blocked and prevented from entering the ecosystem. With proper checks in place, customers can be sure to never get involved in transactions that would damage their wallets’ reputation and history. And finally, putting AML and KYC tools in place makes it possible to immediately identify scammers and block their funds, increasing the level of service security by several times. A recent example is an investigation done by AMLBot’s team about sanctioned Iranian entities transacting with Binance. In the publishedwith diagrams, the research is described in a more detailed way.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Very good article

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 532. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

3 Cleveland Cavaliers in top 10 in early All-Star votingFan voting counts for 50% of the overall total.
Source: cleveland19news - 🏆 70. / 68 Read more »

Ice Age markings may have helped early ancestors with huntingLines, dots and other symbols painted in caves during the last Ice Age may be the earliest example of proto writing -- symbols that communicate a small amount of information like an emoji.
Source: CNN - 🏆 4. / 95 Read more »

Devin Booker ranked 8th among West guards in early NBA All-Star fan votingThree-time All-Star Devin Booker has been out with an injured groin and will be re-evaluated late this month.
Source: azcentral - 🏆 585. / 51 Read more »

Keenan Cahill, Early YouTube Lip Sync Sensation, Dies at 27The content creator collaborated with 50 Cent, David Guetta and more during his lifetime. :( Çondolesces lil homie Msha3elM
Source: billboard - 🏆 112. / 63 Read more »

Jacksonville police issue ‘critical incident briefing’ on November officer-involved shootingThe Jacksonville Sheriff’s Office released a briefing on Thursday about an officer-involved shooting that happened in November.
Source: WOKVNews - 🏆 247. / 63 Read more »

Abortion pills for early pregnancy can be dispensed at pharmacies, FDA saysPills used to begin the process to terminate an early pregnancy can soon be dispensed in some pharmacies after an FDA update this week expands access to medication abortions.
Source: USATODAYhealth - 🏆 706. / 51 Read more »