CertiK unearthed a fast-rising underground market with over 500,000 members where Know Your Customer verification is sold for as low as $8, concentrated in Southeast Asia.
Countries covered by the Financial Action Task Force are required to conduct anti-money laundering reviews annually instead of every 10 years or risk being added to the 'grey list,' or worse, be blacklisted.
Beginning January 2023, wallet providers and digital asset exchanges in Switzerland will be mandated to follow the new KYC regulations, including a CHF1,000 threshold on digital asset transactions.
Prime Minister Pham Minh Chinh is calling for action as he believes “it is necessary to study appropriate sanctions, and assign the government to make detailed regulations" targeting the industry.
Exchanges appear to be unfazed by Japan's heightened monitoring of virtual currency transactions, which include stiffer penalties on firms and individuals involved in laundering digital assets.
As a subset of Anti Money Laundering (AML) laws and regulations, Know Your Customer places a lot of burden on companies to secure client data.
A digital signature still requires an identity, and for high-end and high-value transactions, identity can be provided through certificate authorities and public key infrastructure.
The European Union is bracing for another wave of measures in the digital asset sector as Parliament mulls tougher laws for DeFi platforms and Web3 firms to boost its anti-money laundering campaign.
The use of digital assets in foreign transactions is set in stone, with Russia assuring that the move aligns with its AML policy while entities work with the central bank for smooth enforcement.
An ongoing U.S. Department of Justice probe into whether Binance violated the Bank Secrecy Act sought internal records to determine if the digital currency exchange was complying with AML rules.
Digital currency businesses will soon face much stricter oversight in the European Union via the formation of a new cross-border regulatory body to tackle digital currency-based money laundering.