A new report by on-chain analytics firm CipherTrace found out that most Bitcoin and crypto Know Your Customer (KYC) processes can be exploited by money launderers, criminals, and extremists.
Now available! Our 2020 Geographic Risk Report: VASP KYC by Jurisdiction is the virtual asset industry’s first comprehensive global KYC risk assessment. https://t.co/fD1RJr5zNu #KYC #AML #CTF #DeFi #bicoin #cryptocurrency
— CipherTrace (@ciphertrace) October 1, 2020
It came as the founders of BitMEX faced charges in the US yesterday in a landmark case.
CipherTrade said that over 56% of all cryptocurrency service providers, such as wallets, exchanges, and others, have a “weak or porous” KYC process globally. The metric meant criminals and money launderers can use such services to deposit or withdrawal their ill-gotten funds with very minimal to no KYC.
Leading in such avenues were businesses in the US, Singapore, and the UK, said CipherTrace, despite the strong financial regulations in the three regions.
“Although these regions host a higher volume of crypto service providers in general, the large count of VASPs in these countries that require little to no KYC demonstrates the ease and volume of potential off-ramps for money launderers,” the report pointed out.
CipherTrace analysts, citing the report’s data, found that over 60% of the top 10 “worst KYC countries” in the world were in Europe, 20% are in Latin American and Caribbean countries, and the final 20% were in APAC countries.
Due to strict, or rather: non-existent, regulations around digital currencies, most crypto businesses are forced to operate in obscure lands and open accounts in a tax haven like the Cayman Islands. However, low KYC means regulators can still catch users and charge business owners — such as yesterday’s regulatory action against BitMEX showed.
CipherTrace also pointed out that the burgeoning decentralized finance (DeFi) marketplace — which has grown to over $10 billion in the past months — shows characteristics of and is ripe to be taken advantage of by money launderers.
The firm noted that even as the operation (meaning the smart contracts and other technologies) were decentralized, their actual governance and the presence of board members running the show at such projects meant regulatory trouble may lay ahead.
Researchers found that over 90% of DEXs with a clearly domiciled country had deficient KYC, with 81% having little to no KYC whatsoever. This, according to some regulators, maybe a “compliance violation, despite their decentralized nature.”
The firm cited Valerie Szczepanik of the US Securities and Exchange Commission in the regard:
“[DeFi Projects] are likely subject to various laws already, including securities law, potentially banking and lending laws—definitely AML/CTF laws.”
Bill Barhydt, the co-founder of crypto wallet Abra, also raised similar concerns yesterday after US courts summoned the three founders of BitMEX.
DeFi services are not sufficiently decentralized today to have no central off switch. That means the companies behind them are at risk. Oracles are another problem.
— Bill Barhydt (@billbarhydt) October 1, 2020
The regulators could be coming sooner than one thinks.
The post Data shows most Bitcoin exchanges require negligible KYC appeared first on CryptoSlate.
Author: By TeamMMG
Fresh reports of Indian crypto ban are ‘clickbait,’ says local source
The draconian bill introduced by the country’s former finance secretary Subhash Chandra Garg in 2019 to ban cryptocurrencies in India haunts the country’s crypto enthusiasts and entrepreneurs to this day.
Reports from Bloomberg and the local news outlet Economic Times about the further development of the bill and the possible introduction of it as law has only caused more panic and anxiety within the crypto community.
These reports have always cited “people familiar with the development” as saying that the bill will be discussed shortly by the federal cabinet before being sent to the parliament for consideration. The same statements seem to have been doing the rounds since early June.
Without any additional information, these reports suggested a high possibility of a ban on cryptocurrencies in India.
There is, however, as much uncertainty regarding the bill today as there was a year ago. The only thing that has changed — that too in the favor of the Indian cryptocurrency industry — is that in March the Supreme Court struck down the Reserve Bank of India’s circular banning financial institutions from dealing with cryptocurrency companies and traders.
Subramanian Swamy, the ruling party’s member of Parliament of the Rajya Sabha, the Indian Parliament’s upper house, tweeted about the ban’s repeal saying, “SC allows cryptocurrency trading, cancels RBI’s 2018 circular.”
Swamy was also quoted by a local news outlet as saying that “cryptocurrency is inevitable.” Further refuting the claims of a possibile cryptocurrency ban, crypto news outlet The Block recently reported that Swamy has denied hearing about any discussion of a cryptocurrency ban:
“It will be madness if they do.”
Speaking to Cointelegraph, Ashish Singhal, the CEO of cryptocurrency exchange CoinSwitch — which has its major user base in India — pointed toward the list of bills that is subject to discussion during the Monsoon Session of the Parliament. He said that as much as one can see from the list, no purported ban on crypto trading is scheduled for discussion.
Nischal Shetty, the founder of the Indian cryptocurrency exchange WazirX, and Siddharth Sogani, the founder of the Indian blockchain research company Crebaco, also remarked on the bill, saying there was nothing to worry about. Per the execs, there lies a long road ahead before the bill would even make it to the parliament.
“It’s too early for the draft crypto bill to be presented to the parliament,” Shetty added.
Calling the recent news articles “clickbait,” Sogani said that the Indian crypto community had “reacted with a sudden panic but many crypto users in India are now used to such clickbait news.”
“The bill was moving for sure few months ago but I am not sure about the source which Bloomberg is discussing at the moment,” he stated..
On the same note, Shetty said that it was a known fact that “the bill has been with the Finance Ministry ever since the Garg committee submitted to them.” But the way it has been interpreted in the media has caused mild panic within the industry, adding:
“Now everyone knows that it’s ultimately the same information that has been around for a while.”
Author: News Bureau
Coinbase Offers Instant Withdrawals Via Visa And Mastercard.
Cryptocurrency exchange Coinbase now offers instant withdrawals in nearly 40 countries, including the US and the UK.
The new feature is being rolled out through Visa and Mastercard. The company said its customers in the US, UK and Europe will be able to withdraw funds from a linked Visa debit card. In the US, they will also be able to withdraw money from the Mastercard.
Terry Angelos, Visa Senior Vice President and Chief Financial Technology Officer said:
“By enabling real-time card withdrawals with Visa Direct, Coinbase provides a faster, simpler and easier-to-use interface for its users, making it easy to convert cryptocurrency balances to fiat, which can be spent in excess of 60 million. from merchants that accept Visa. . “
Sherri Haymond, Executive Vice President of Digital Partnerships at Mastercard, said that Coinbase will use Mastercard Send, enabling its customers can withdraw and use their funds wherever a Mastercard debit card is accepted.
The cryptocurrency exchange also noted that it will charge US clients a commission of 1.5% (minimum $0.55) and up to 2% for UK and European clients for instant withdrawals.
It was previously reported that Coinbase added support for staking ATOM, the native token of the Cosmos blockchain.
Author: Souvik Sarkarhttps://news.triunits.comCrypto Expert And Blogger .
Plair (PLA) Price Reaches $0.0001 on Top Exchanges
Plair (CURRENCY:PLA) traded down 2.1% against the US dollar during the twenty-four hour period ending at 20:00 PM E.T. on October 3rd. One Plair token can now be bought for about $0.0001 or 0.00000001 BTC on major cryptocurrency exchanges including BitMart and RightBTC. Over the last week, Plair has traded down 2.8% against the US dollar. Plair has a total market cap of $1.57 million and $9,541.00 worth of Plair was traded on exchanges in the last 24 hours.
Here is how related cryptocurrencies have performed over the last 24 hours:
Plair (PLA) is a token. Its launch date was November 21st, 2018. Plair’s total supply is 100,000,000,000 tokens and its circulating supply is 25,610,108,545 tokens. The official message board for Plair is medium.com/plairlife. The official website for Plair is plair.life. Plair’s official Twitter account is @teamplayup. The Reddit community for Plair is /r/Plair.
Plair Token Trading
Plair can be traded on these cryptocurrency exchanges: RightBTC and BitMart. It is usually not currently possible to purchase alternative cryptocurrencies such as Plair directly using U.S. dollars. Investors seeking to acquire Plair should first purchase Ethereum or Bitcoin using an exchange that deals in U.S. dollars such as Gemini, GDAX or Coinbase. Investors can then use their newly-acquired Ethereum or Bitcoin to purchase Plair using one of the aforementioned exchanges.
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Author: Samantha Guadardo