The COVID-19 pandemic is forcing governments around the world to focus on introducing blockchain technology into their financial services, along with updating the regulatory requirements needed to keep the booming financial technology industry clean.
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For example, on September 10, Switzerland – the global hub for the asset management industry, which accounts for around $ 2 trillion or 27% of the world’s offshore assets – issued a revised Blockchain Act that includes a new set of laws and regulations to support the growth of blockchain and decentralized financing companies in the country. …
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What’s more, in the wake of a major breakthrough in the crypto industry, Ciphertrace’s general organization for the exchange of travel information or TRISA and the developer of the world’s first tracking tool for Monero, together with CoolBitX’s Sygna Bridge, have announced proof of compatibility. – A concept that allows cryptographic service providers from both systems to meet the requirements defined in the rules of motion. It is publicly available on GitHub.
The itinerary was introduced by the Financial Action Task Force on Money Laundering in June 2019 and requires financial institutions involved in cryptocurrency transactions to share information about the respective recipients and senders: know the customer or know the customer. As a result, Virtual Asset Service Providers or VASPs can communicate compliance data with minimal disruption.
As Michael O, CEO of CoolBitX and founder of Sygna Bridge, explained: “In recent years, there have been many innovative solutions that help cryptocurrency companies and virtual assets comply with money laundering rules that are beginning to evolve across the board. world – each addressing the needs of different audiences. Finally, money laundering and terrorist financing are global issues that require cooperation between different organizations. It all starts with ensuring that solutions can communicate effectively with each other. By adapting industry standards such as IVMS101 and building tools to ensure proper translation and communication, Sygna Bridge and TRISA work together to ensure the growth and development of the cryptocurrency industry in a positive direction.
John Jeffries, Chairman of the Board of TRISA, added:
“Achieving global interoperability for compliance with jurisdictional travel is critical to a successful Early Access phase. We are pleased that the interoperability of messages and improved interoperability with VASP authentication are proof of this concept of travel rules. ”
According to statistics from the US Bureau of Drugs and Crime, up to $ 2 trillion is laundered in the global market each year, surpassing the latest KYC standards for cryptocurrencies. According to the latest CipherTrace report, financial institutions can lose up to 90% of cryptocurrency-related transactions because they ignore lesser-known digital asset exchanges.
Until they are finally caught up in law enforcement in the United States, criminals choose to use cryptocurrency acrobats or cryptocurrency mixing services to pay for illegal goods and services that are continued without government or central bank supervision, thus blocking the way back to the original source. . fund.
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Nearly a month after announcing the largest seized cryptocurrency value ever used by terrorist organizations in an agency investigation conducted by the FBI and the Internal Revenue Service’s Department of Homeland Security and Criminal Investigations, the U.S. Department of Justice has presented practical results. On September 3, it lasted for five years and was targeted at the Mexican drug cartels.
Robert Murphy, Special Agent in charge of the Atlanta Drug Enforcement Administration:
“We have a Mexican drug cartel that originally caught our attention through the US Fish and Wildlife when they smuggled over 900 kg of cocaine with frozen sharks.”
Prosecutors accuse 12 defendants and two companies of conspiracy to commit mail and telegram fraud, conspiracy to own to distribute controlled material and conspiracy to launder money. The charge suggests a possible conviction in federal prison without parole.