Cryptocurrency theft is currently a major threat for the global digital currency market. Cryptocurrency exchanges are taking efforts to tackle this issue through Anti-Money Laundering (AML) software, which is used to prevent and report money laundering activities.
In many developed countries, inspections are conducted to detect “suspicious” coins, Cryptopay.me founder Georgy Basiladze said during the TerraCrypto 2019 forum. According to him, advanced countries treat cryptocurrency as a regular currency; despite the lack of a legal framework for the crypto-sphere, cryptocurrency exchanges are considered as minibanks and payment systems.
“Cryptocurrency exchanges are taking Anti-Money Laundering (AML) measures aimed to prevent legalization of criminal proceeds. There are companies that analyze blockchain and detect the source of such finances – such as a UK bitcoin surveillance firm Elliptic, which attracted investments of $5 mio in 2016, or Bitfury Group’s Crystal software,” the expert noted.
According to Basiladze, “bad”, stolen coins can lead to blocking users’ accounts in case they appear at a cryptocurrency exchange. Transactions involving such digital currency is considered toxic.
The expert also warned purchasers to be more careful while acquiringcryptocurrencies.