Kitco News anchor and producer David Lin recently interviewed Michal Gromek about the crypto industry. He posed many questions to the vice president of the Digital Assets Task Force of the Global Coalition Against Financial Crime. Michal Gromek notably talked about the regulation of cryptos. He also addressed the issue of digital identities. Check out the statements Gromek made about blockchain technology during the interview.
Law enforcement can track down crypto holders
During his recent interview, Michal Gromek declared : “Transacting on the blockchain and feeling like you are going to run away and go unpunished is not true“. He explained that law enforcement can easily track crypto users. According to him, digital assets are not not as anonymous as you think. He added that token exchanges are done following several KYC (Know-Your-Customer) and anti-money laundering regulations. These make it easy to find criminals.
Michal Gromek explains that there is a financial action task force that works globally. The group’s goal is to ensure that crypto service providers comply with applicable regulations. “When you send money to another wallet and then to a sanctioned entity, it remains visible on the blockchain…and it can still be reportedsaid Gromek.
The professional clarified that cold wallets (accessible offline) are also monitored, as users end up using hot wallets when they want to transact. According to him, performing illegal transactions on blockchains like Bitcoin and Ethereum is “notnot very smart“.
Recommendations to avoid being scammed
During his interview, Michal Gromek gave some recommendations to protect against scams in the crypto sector. One of them is that investors should “choose active partners in a trusted jurisdiction“.
However, Michal Gromek points out that investing in new assets is not never free from risk. Furthermore, he suggested that the work of regulators globally will eventually pay off.
Michal Gromek has shown that crypto holders are mistaken in believing that blockchains offer complete anonymity. In fact, they store all the data related to a transaction, and the police can use it to track down criminals. With crypto addresses, one can easily know how the transactions happened.
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