Regulating Cryptocurrency as the 2020s CommenceScroll Down
Regulatory compliance has become one of the most pressing issues for cryptocurrency exchange platforms. Not long ago, these platforms operated in a sector often described as a free-for-all where investors who don't know any better; however, times are changing and financial regulators are starting to tighten the screws in this regard.
Disclosures to investors about volatility and significant market risks are no longer sufficient to placate regulators. What exchange platforms must demonstrate now is that they are following sound financial practices such as Know Your Customer and Anti-Money Laundering compliance. With regard to the latter, emerging cryptocurrency exchange CoinField is not taking any chances. According to a press release issued by Chainanalysis, a blockchain tech startup dedicated to regulatory compliance, CoinField has signed an agreement to secure its analytical services.
Chainanalysis has been tasked with monitoring trades and other transactions conducted on the CoinField platform to ensure that they do not run afoul of established AML practices. The blockchain app used for this purpose is called Know Your Transaction (KYT), and it is not expected to disrupt the flow of trading as it monitors trades in real-time. Naturally, some transactions will prompt greater scrutiny than others; for example, large transfers between digital currency wallets and patterned token exchanges that appear to be conducted for the purpose of "mixing."
While the analytical methods used by Chainanalysis are proprietary, the reporting that can be provided to auditors and regulators will follow established standards. One of the features of the monitoring software is a graphical map that makes it easier to spot suspicious activity as it happens before taking a closer look at the transaction and its numerical values. The Chainanalysis app can simultaneously monitor more than one blockchain network.
CoinField is monitored by the European Financial Intelligence Unit Network, which is funded by the European Commission in order to connect as many intelligence agencies as possible. The data collected by the FIU is anonymized up to the point when suspicious transactions deserve a closer look. CoinField currently accepts investors from more than 190 countries; it offers trading in all the major cryptocurrency tokens, which can be exchanged into the Big Six fiat currencies.