Transaction Monitoring In Cryptocurrency-Everything You Need To Know.

What is a KYC process in Crypto?

Customer identification, due diligence and ongoing monitoring are components of KYC programs. A customer identification program uses reliable and independent data to verify that the customer is who they claim to be. Customer due diligence is a new client or business relationship risk assess men t.f I nancial service providers assign risk ratings to accounts based on background checks, customer surveys, and reviews of the client's transaction history. Continuous monitoring involves regularly reviewing transactions for signs of criminal activity. Suspicious activity reports must be filed with appropriate law enforcement agencies when suspicious activity is discovered.

FW: What trends are you seeing in the regulation of cryptocurrency? What key developments would you highlight in this area?

Regulation in the digital assets space continues to evolve and expand at an incredibly fast pace. 42 countries have adopted regulatory measures. The first draft of a regulatory framework for digital assets was released by the White House. The Markets in Cryptocurrencies bill was passed by the European Parliament. Major steps toward regulatory clarity were represented by those developments. With a new balance of power in the US House of Representatives, it will be interesting to track progress toward passing the Responsible Financial Innovation Act). Regulators will push for legal precedence through enforcement. Gary Gensler, chair of the Securities and Exchange Commission, has spoken about the need for centralised exchanges to separate market-making activities from a broker and retail trading platform. If the SEC calls for exchanges to register as broker-dealers, it will bring additional safeguards for consumers.