XRP cryptocurrency owner Ripple Labs has signed a deal with regulation technology startup and AML solution provider ‘Coinfirm,’ that will investigate how the cryptocurrency is being used.
With the Anti-money laundering (AML) information, Coinfirm will provide its users about cryptocurrency, whether the cryptocurrency has been processed by a technology called “mixer.”
The mixer is designed to launder cryptocurrency by privately exchanging funds from multiple counterparties; information on clustering, when small amounts of currency are sent via many different addresses to conceal the size of large transactions and whether the funds are coming from a known theft or not.
XRP and its ecosystem are stepping forward in attempting to get compliant with the new transparency requirements which have been set up by the Financial Action Task Force
The FATF administers some 37 countries, and have issued a set of guidelines to establishing rules for entities that may be considered digital asset operators. It is an Intergovernmental body established in1989 by the Ministers of its member jurisdiction.
The main objective Is to Tackle Money Laundering
The main objective of FATF is to set standards and promote effective implementation of legal, regulatory and operations areas to tackle money laundering, terrorist financing and other related threats to the integrity of the international financial system.
The FATF is planning to establish more power to control over cryptocurrency exchanges to prevent the illegal use of digital currencies or say for, money laundering and related crimes.
Secretary of the Treasury Steven Mnuchin said-
“By adopting the standards and guidelines agreed to this week, the FATF will make sure that virtual asset service providers do not operate in the dark shadows.”
Coinfirm Tackles The Need for Anti-Money Laundering in Cryptocurrency
It is a set of laws, regulations, and procedures meant to halt criminals from hiding illegally obtained funds as legitimate income.
About three years ago, when Coinfirm came into existence, different people in the crypto space had different opinions about the company. The dedicated crypto people disagreed with it stating that crypto was not created to have AML processes in its operations as they were in belief that crypto is developing as a money-laundering machine.
But contrary to that belief, it can not be possible to ignore the world of standards, rules, regulations, and practices when it comes to mass adoption.
Actual Identities Will Not Be Revealed
Coinfirm will not reveal the actual identities tied with public address, it will provide information on the risk profile (A risk profile is an evaluation of an individual’s willingness and ability to take risks. It can also refer to the threats to which an organization is exposed.) of the entity that owns the address.
It will also help determine if an address is owned by an exchange that allows unspecified trading.
“I won’t know who you are personally. We don’t do any personal data, we argue with FATF that this is completely sufficient, and effectively it is sufficient,” said Coinfirm CEO Pawel Kuskowski.
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