What challenges do banks face when offering crypto-related services and what arrangements are needed to establish an effective anti-money laundering framework in this area? These are the questions to which the director of growth of Bullieverse, Arunkumar Krishnakumar has provided some answers, in a column published on CoinTelegraph. Bullieverse is a company that provides arcade game experiences to online communities.
Some crypto solutions promote money laundering
When banks and financial institutions start offering services related to Web3, cryptos and NFTs, they become the custodians of customer assets. This implies that they must protect their users from bad actors. They must also identify whether the assets under management come from illegal activities. Bullieverse Chief Growth Officer Arunkumar Krishnakumar said so in a column published by Corner Telegraph.
However, he only remarked that the crypto industry has made it difficult for anti-money laundering functions at players like banks. This is due to solutions like crypto mixers and privacy-promoting tools, which hackers and bad actors can use to erase the tracks of stolen assets.
Urgency to provide centralized actors with the means to deal with the problem
“To better cope, it is necessary to effectively identify the risks associated with the fight against money laundering (…) Institutions need a multitude of data from a variety of sources, and the breadth and depth of the data to which an institution can access determine the effectiveness of its anti-money laundering function. This is why anti-money laundering frameworks will need to have several capabilities that banks need to assess and put in place”suggested the expert in the document.
Among the capabilities banks need to have are trusted sources on on-chain data, monitoring, wallet screening, blockchain forensics, multi-asset monitoring, and increased cross-blockchain monitoring.
To show that ongoing efforts in this direction, the head of Bullieverse cited Solidus Labs, Moralis, Cipher Blade, Elliptic, Quantumstamp, TRM Labs, Crystal Chain and Chainalysis as vendors working to offer banks and institutions financial holistic anti-money laundering frameworks in the crypto industry. But, concludes the author of the forum, everything remains to be done. For many in the crypto community, only well-crafted regulation can help better deal with this problem.
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