Maxim Kurbangaleev Money Laundering In The Crypto Market
From the beginning of its existence, the cryptocurrency market faced independence from state institutions and a decentralized database, which in turn reflected the anonymity of cryptocurrency users, says Maxim Kurbangaleev and - explain.
In 2020-2021, everything changed: the state and its regulators can no longer stay away from multi-billion dollar companies. Some jurisdictions (such as China) have taken active measures to ban cryptocurrencies to protect their financial system; others, on the contrary, have legalized both the cryptocurrency itself and the business and its use, bringing it to the level of a legal method of payment.
In September 2021, the first case of sanctions against the cryptocurrency company - OTC trader or, simply, crypto exchange - SUEX was known. The US Office of the Financial Conduct Authority (OFAC) and Chainalysis (a company that provides blockchain verification services) participated in the investigation. According to them, SUEX is involved in money laundering, the number of illegal activities is more than 480 million dollars. The process of extensive research and the imposition of restrictions continued.
Some crypto exchanges have been blocked on exchange platforms. However, this is not the only problem for the cryptocurrency market in 2022. Financial expert Maxim Kurbanaliev shares his opinion on what is currently happening in the cryptosphere, the reasons for the current stagnation and what will strengthen the situation . What is wrong with the crypto market? - Maxim Kurbangaleev
The cryptocurrency market is currently in a so-called "downtrend", when the value of the currency is falling. Some market analysts call this period "crypto winter": Along with the price, the market capitalization is also decreasing, the market value is decreasing, and the consumers are feeling negative.
Other experts predict the failure of blockchain technology by saving only a few of the popular cryptocurrencies. Strong economic conditions, global inflation and a general slowdown in the economy are not conducive to business growth. Maxim Kurbangaleev believes that the cryptocurrency market has a number of specific issues, which caused this failure:
“ There is no doubt that the situation in the world is affecting cryptocurrency activity. These things are hard to influence; but there are also those that can be defined. I believe that the lack of regulation of the circle is a big drawback, which leads to many problems. Without control, the market can attract unscrupulous participants: fraud schemes, pyramid schemes, brokers and others. There is no specific definition of the administrator for the identification and monitoring of transactions, it is difficult to remove these unauthorized plans. This, in turn, poses the risk of damaging the cryptocurrency by innocent users who buy it through exchanges or crypto exchanges. In the meantime: Even if the first block of the blockchain containing information on cryptocurrency passes through a prohibited transaction, the user's wallet receives a special token. Wallet operations may be restricted or even funds may be restricted. In fact, the employee is responsible for the actions of others. But this problem is related to the lack of law, when the debt of the wallet owners is not high. ”
For one reason, illegal encryption services are still a big risk. The value of cryptocurrencies is not regulated systematically, so any event (even social media) can cause a cryptocurrency to rise or fall. "The law of the market will bring some stability and promise.
“ At first, it was thought that users themselves would control the value of cryptocurrency: the higher the demand, the higher the price. It is important to protect this price structure, which attracted many participants, it is enough to make it a law. ”
Maxim Kurbangaleev: Is There A Future For Cryptocurrency Trading?
Like many analysts, Maxim Kurbangaleev is not in a hurry to leave the cryptocurrency market. The expert outlines the laws of nature:
"After the 'crypto winter', the 'crypto-thaw' will come, and investors will turn their attention to cryptocurrency again, buying it low and returning money to the market. Since regulators in many countries are already doing extensive research of the crypto industry, it is possible to eliminate fraudulent schemes from the media. But at the same time, "white" companies without a system that "does not consider" the scale and strength of the AML (Anti-Money Laundering) internal control system should not suffer.
The right solution, in my opinion, will be the global law of the company, when the market leaders, together with the community, create a legal framework for this work: licenses, customers and partners need identification, management principles and legal or illegal indicators. of work. I think in this case, the cryptocurrency industry will get a second wind.
We also discussed with our guest expert what protections against restrictions crypto companies should implement. Many crypto exchanges and exchanges perform KYC (know your customer) procedures for their customers, and also use blockchain and audit programs (previously mentioned Chainalysis, Elliptic, etc.).
Maxim Kurbangaleev believes that in these circumstances, it may not be enough:
“ I think it is better to play it. We have examples from the banking sector with established AML systems that have proven their effectiveness over the years. I believe that businesses in the cryptocurrency market should use these measures to identify and monitor transactions so that local regulators do not detect illegal activities in their operations. The company must identify the customer, and ensure that the documents belong to this person or company; to verify the presence on the restricted list and the name of the company. This is the only way to survive this uncertain time. ”
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