Bitcoin Global News (BGN)

March 27, 2019 -- ADVFN Crypto NewsWire -- What if I told you that most of the cryptocurrency exchanges that currently exist, do not have adequate know-your-customer procedures? You might ask how that is relevant, since crypto exchanges were always supposed to be places that give people the freedom of the stock market, without the hassle of being approved for it.

The fact is, even though that might equate to Satoshi and the cypherpunks’ vision for such entities, it is not our reality, at least not yet. Laws exist and governments still rule our behavior related to money. Even Satoshi would agree that crypto is money, though he likely would not agree that it should be regulated.

What emerges as paramount in this discussion is that for now, when crypto exchanges follow certain KYC and AML procedures, governments are more likely to welcome them with open arms. Reportedly, however, a survey has just been published that indicates that 69% of 216 cryptocurrrency exchanges are not adequately using know-your-customer procedures.

Even worse, only 26% of all exchanges surveyed were practicing any sort of realistic anti-money laundering procedures like full-time staff with true knowledge of how to deal with money laundering.

Since all of this was revealed only to CoinDesk, it is difficult to speculate on further details on this subject, beyond what they have provided. Still, what may be most interesting to the average crypto investor is that the same report apparently clearly stated that Binance poses a “high regulatory risk.”

The specific reason for this was that at the time of publishing the report, Binance was allowing customers to withdraw the equivalent of 2 Bitcoins or less, without really identifying themselves. While this does pose a risk, especially in the cases where nefarious groups might spread ill-gotten funds around many different accounts, Binance has just partnered with a firm to improve its’ overall compliance.

Only time will tell whether this firm advises them to change their no KYC policy on small deposits and withdrawals.

 

 

By: BGN Editorial Staff

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