New research drafted by the Basel Institute of Governance and The International Academy of Financial Crime Litigators, has suggested that action against illicit crypto markets must be more coordinated.
July 19th, 2022
ShareLove this blog? Why not share it with the world?
A Swiss-based think tank has called for increased international cooperation regarding cryptocurrency regulation and enforcement in order to combat black market activity.
A recent paper, which was drafted by the Basel Institute of Governance and The International Academy of Financial Crime Litigators, has suggested that action against illicit crypto markets must be more coordinated. At present, there’s concern that it’s too easy for criminals to exploit loopholes between jurisdictions.
Federico Paesano, one of the report’s authors, has emphasized that, at present, not every country is following the same rules, or implementing them at the same pace. As a result, he believes that criminals are able to “exploit the gap in legislation between different countries, or go to jurisdictions where the rules are more relaxed in terms of anti-money laundering and know-your-customer checks”.
He added that “crypto investigations are very often international by nature, and cryptocurrency can move much faster than fiat currencies… Almost all such investigations require the cooperation of another country, and it’s currently a slow process that takes a lot of time.”
The report also recommended that crypto investigators should look to adapt their techniques and technologies so they are more in line with the methods used by criminal actors. In addition, the report also suggests that judicial authorities should develop new strategies for prosecuting virtual asset-based money laundering.
The recommendations outlined in the report follow comments made earlier this year by Him Das, acting director of the U.S. Financial Crimes Enforcement Network (FinCEN). In April, he told Congress that the agency’s existing powers are “not right-sized for the types of threats we’re seeing through the use of cryptocurrency.”
Similarly, in the UK, experts have pointed out that financial authorities are currently responding to crypto laundering by using laws that are more than 20 years old. As a result, the government has promised to protect the country’s financial system via the new Economic Crime Bill.
The regulatory landscape surrounding cryptocurrency is constantly changing. With new threats continually emerging and regulatory bodies struggling to keep up, the onus is on crypto businesses to keep their customers safe.
Thankfully, our crypto identity verification solution makes investing in crypto safe and easy. After all, our selfie-based identity verification platform provides industry-leading conversion rates and high levels of fraud prevention. Overall, it can reduce fraud losses, maximize conversions, and provide global compliance.
To discover more about how we can help you comply with numerous regulations while allowing honest customers to access their crypto, talk to us today.
We are thrilled to unveil Veriff’s new brand identity, reflecting our next stage of growth and our mission to bring real safety, protection and transparency to the internet. Here’s more on why we did it.
At present, financial institutions such as banks are required to investigate their clients and their sources of wealth or funds. But, until now, many other financial gatekeepers have been exempted from so-called ‘due diligence rules’.
If new legislation passes, it will mean that all NFT marketplaces will have to assess the risk of illicit finance flowing through their systems and carry out identity checks on new customers and suspicious transactions.