There is a common opinion among the skeptics in the cryptocurrency industry, that Bitcoin and other cryptocurrencies are often used for illegal activities. We are representatives of an infancy industry and we feel responsible for the “vector of development” and the image of the industry in general.
That is why our main goal is to conduct a series of operations to clear the exchange’s field from shadow operations.
Key Steps to Transparency
EXMO has already launched services to track transaction flows and compliance with anti-money laundering regulations. Starting from September 2019, the platform started using the “CipherTrace” service, popular in the financial industry. This product is used to assess the risk of wallets from which deposits are made and wallets to which conclusions go. After an appropriate assessment, the decision whether to close accounts that were noticed in violation of AML rules is done. More details about the “CipherTrace” service are outlined here.
#2: User Verification
One more important step on the way to transparency is the mandatory user verification on the platform starting from the end of January 2020. This event is related to the entry into force of the Fifth Directive Anti Money Laundering (5AMLD) in January 2020.
#3: Delisting of all the anonymous coins
Lately, we’ve seen that many cryptocurrency platforms have delisted anonymous cryptocurrencies. EXMO won’t be an exception – we, like our colleagues, believe that the transactions of these coins can be used in money laundering. Therefore, we will follow the market standards, which will ensure our client’s legal security and ease of use of the exchange with the participation of a friendly banking system and the availability of payment operators.
#4: Bank Licenses
At the moment, unfortunately, there is no proven practice of regulating the cryptocurrency industry. Now legislative projects for the regulation of cryptocurrencies are at the stage of formation or adoption in many countries.
Today, to conduct exchange activities in the UK (where EXMO is registered), a mandatory license is not required. But EXMO team is actively working to obtain licenses in the jurisdictions where they already exist. EXMO Cryptocurrency Exchange has already submitted an application for a license in Estonia and started the registration process as an MSB company (Money Service Business) in FinCen for 10 states of the USA.
According to the team’s estimates, these measures will get the exchange to the level of service.