More than half of all crypto exchanges have weak or no ID verification
The highest number of exchanges defying regulatory norms are in Europe More than half of all exchanges worldwide have weak KYC identification protocols — with exchanges in Europe, the U.S. and U.K. among the worst offenders, according to a new study by blockchain analysis firm CipherTraceCipherTrace analyzed more than 800 decentralized, centralized, and automated market maker exchanges and found 56% of them did not follow KYC guidelines at all despite anti-money laundering (AML) regulations. The highest number of such exchanges are in Europe — a region renowned for stricter regulations.....
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Governments have been increasing their efforts to regulate and monitor digital currency operations. Many global exchanges now require identification to register on their sites. With politicians currently forming blockchain research groups and crafting Bitcoin legislation, it’s safe to say regulatory actions will continue. Crypto-Exchanges With Little to....
The cryptocurrency industry in the Netherlands has won a small but significant battle. The country’s central bank has canceled some excessive verification procedures that it imposed on crypto service providers last fall. The move comes after a local exchange took the matter to court. DNB Takes a Step Back on Unlawful KYC Requirements De Nederlandsche Bank (DNB) has backpedaled on some recently enforced regulations regarding the crypto industry. In November 2020, the regulator instructed crypto platforms to obtain additional information from users as part of their know-your-customer....
More regulation is coming, and it will be costly, but compliance can also expand an exchange’s customer base. Crypto intelligence firm CipherTrace released a study on Oct. 1 reporting that more than half of the world’s cryptocurrency exchanges had deficient customer identification processes in place against money laundering. On the same day, the United States government announced that it had formally charged BitMex, a top virtual asset service provider, for “failing to implement required anti-money laundering procedures,” among other things.The two events, surely unrelated, nonetheless....
Will centralized exchanges continue to provide the regulated environments required for digital assets to evolve into the mainstream, or will the future belong to DEXs? Decentralized exchanges are undoubtedly an exciting development in crypto. DEXs facilitate the trading of cryptocurrencies directly between users, without the need for a trusted intermediary. This, in turn, allows users to keep custody of their funds.However, while DEXs have their advantages, they still lack in terms of regulations and scalability, which are key considerations that could determine the future trajectory of....
Adopting more stringent Know Your Customer (KYC) checks can give crypto exchanges a competitive edge over those that meet minimal standards. Crypto is a fast-moving sector where new trends — decentralized finance and nonfungible tokens among them — accelerate in the blink of an eye. And as demand for digital assets grows, the need for regulation grows too. Anticipating those regulations and having the systems in place for future compliance can position crypto exchanges as industry leaders. Those that do the bare minimum risk falling behind as customers turn to more trusted....