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It's a very good time to be a money launderer

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It’s a very good time to be a money launderer

4th August, 2017

Cryptocurrencies have exploded in popularity in recent years that has led to a red-hot fundraising trend where start-ups bring in millions of dollars in capital by issuing virtual tokens to investors in exchange for money.

Initial coin offerings (ICOs) have become a primary means of fundraising for projects built on blockchain technology. Companies create and issue digital tokens that can be used to pay for goods and services on their platform or stashed away as an investment. They put out whitepapers describing the platform, software or product they’re trying to build, and then people buy those tokens using widely-accepted cryptocurrencies (like bitcoin and ethereum) or fiat currencies like the U.S. dollar.

All of that is done without any regulatory oversight, and that has regulators — and members of the financial industry — worried about the potential of widespread money laundering and fraud.

… (see full article here)

 

KYC Commentary: Cryptocurrencies have great potential but also great potential for abuse. We are seeing some movement towards greater efforts for compliance in cryptocurrency exchanges and our platform is an ideal system for this application.

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