Over half of crypto exchanges ignore KYC regulations

2020-10-2 14:42

CipherTrace discovered the shocking revelation that over 50% of crypto exchanges have either weak or no ID verification at all

The study showed that the majorly affected regions with limited adherence to regulations were Europe and the US. The analytics firms studied over 800 centralized, decentralized and automated market maker exchanges.

The study findings

According to CipherTrace, 56% of the studied cases were not compliant with know-your-customer (KYC) guidelines. The study discovered that the highest number of non-compliant exchanges were in Europe, possibly due to the fact that there are more regulations to flaunt than other territories. In addition, two-thirds of all European virtual asset service providers showed weak KYC practices.

Russia, the UK and the US lead in terms of countries with the highest number of cases with weak KYC adherence. CipherTrace further revealed that the majority of crypto exchanges don’t even care to state their country of origin on their T&Cs.

A staggering 85% of these exchanges have a poor KYC framework, which makes it suspicious that the omission of their origin is intentional. The deliberate omission is to help them avoid complying with AML regulation.

The Seychelles once again hit the headlines for its money laundering notoriety. 70% of crypto firms registered in the island country have poor adherence to KYC guidelines.

Bone of contention on DeFi’s regulation

The question of whether DeFi projects providing financial services should be subject to similar regulations was also raised in the report.

Valerie Szczepanik, the SEC’s Crypto Czar, spoke on the subject at the beginning of the month saying: “These are all financial activities and they are likely subject to various laws already, including securities law, potentially banking and lending laws—definitely AML/CTF laws”.

According to CipherTrace’s Dave Jevans, DeFi protocols would show resistance against compliance to regulations. “From what we have experienced over the last couple of months is that they don’t want to have anything to do with KYC.” He went on to add that they would eventually have no choice but to adhere.

The post Over half of crypto exchanges ignore KYC regulations appeared first on Coin Journal.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Emerald Crypto (EMD) на Currencies.ru

$ 0.0095806 (+7.58%)
Объем 24H $0
Изменеия 24h: 2.35 %, 7d: -7.78 %
Cегодня L: $0.0086651 - H: $0.0095806
Капитализация $183.154k Rank 1690
Цена в час новости $ 0.006499 (47.42%)

exchanges crypto kyc regulations ignore half journal

Источник: coinjournal.net

exchanges crypto → Результатов: 126


Фото:

Turkey Updates Cryptocurrency Regulation Amid Payments Ban and Collapsing Exchanges

The Turkish government has updated the country’s cryptocurrency regulation following the banning of cryptocurrencies for payments and failing crypto exchanges. Published in the Official Gazette on Saturday, the new rule adds crypto trading platforms to the list of entities covered by anti-money laundering (AML) and Combating the Financing of Terrorism (CFT) regulations. The Official Gazette […]

2021-5-3 10:30


Фото:

Ethereum Classic Under Close Monitoring for Potential Delisting by Major Crypto Exchanges

Several crypto exchanges are monitoring Ethereum Classic to decide whether to delist the coin after its recent two major 51% attacks that saw the network lose over $5.6 million in double-spending. Both attacks, which took place between July 31 and 6 august saw the hacker make off with 807,260 ETC. The high sophistication level of […]

2020-8-19 00:22


Researchers Expose Key Security Weaknesses on Crypto Exchanges That Need to Be Addressed

During Wired’s Black Hat Security Conference, held on Aug. 6, Aumasson and Shlomovits discussed three key flaws on crypto exchanges storage of users’ funds. According to their research, crypto exchanges are time and again falling to these weaknesses due to weak or failure to correctly implement the security protocols.

2020-8-11 19:48


Decentralized Exchanges Have Tripled in Volume Since 2018, But Are They Ready for Mass Adoption?

It’s no secret that centralized exchange platforms are prone to a wide range of security issues, with billions lost over the last decade in exchange hacks. Decentralized exchanges provide traders with the ability to control their own crypto while they trade and are growing rapidly — but the DEX model still needs work. The crypto […]

2019-8-28 08:39


дальше еще 77 новостей →

Партнеры Currencies.ru

Реклама на Currencies.ru

Самое свежее на Currencies.ru

Bitcoin surges above $70k again as Bitbot’s presale officially hits $3.5m

Key takeaways BTC is now trading around $71k per coin after adding 6% to its value. Bitbot’s presale has officially crossed the $3.5 million mark as it draws closer to its end. Bitcoin hits $71k as it eyes new all-time high Bitcoin, the world’s leading cryptocurrency by market cap, has been performing well over the […] The post Bitcoin surges above $70k again as Bitbot’s presale officially hits $3.5m appeared first on CoinJournal.

CME prepares to launch spot Bitcoin trading — FT

CME plans to launch spot Bitcoin trading, challenging Binance's dominance and highlighting Wall Street's crypto interest. The post CME prepares to launch spot Bitcoin trading — FT appeared first on Crypto Briefing.