[Cryptolie] Problem with cryptocurrency used in the Telegram chat room
[Cryptolie] Investigations into the Telegram ring that enslaved dozens of women is continuing as it was found that cryptocurrency was used in the scheme. Cryptocurrencies are helping with the investigation due to their blockchain-based transparency, but an obstacle was found in the investigation. #Special crimes can be traced with KYC One of the topics gaining steam in the industry is Know Your Customer (KYC) policies. In terms of regulatory requirements, KYC is probably one of the first things needed for the industry to grow. KYC provides identification based on blockchain technology and could help with the investigation. Dark coins are hard to trace, but if that dark coin was traded through an exchange with a KYC policy, the investigation can continue. The Financial Action Task Force (FATF) last year realized this and added a KYC requirement. It said cryptocurrency can be traded if an institution verifies the trading parties, account information and identification. KYC is a system that requires such information from trading parties. The standard is going to be mandatory in Korea since the passage of related legislation in March. #KYC becoming real, but still has loopholes KYC is becoming a widespread standard as the international community is working together to prevent crimes. But there seems to be some loopholes at this point at cryptocurrency exchanges. Join:D examined the KYC systems for some of the major exchanges. We first checked out Binance. The exchange allows registration with email verification. The problem is that with an email verification code you can access to all the services offered by Binance. Binance actually required KYC verification for amounts more than 2BTC, but such problems still exists. Other foreign cryptocurrency exchanges have the same problems. Korea has better KYC implementation with cell phone verification. #KYC will only expand Systematic improvements including KYC are expected to be required moving forward to prevent crimes. In March, LocalBitcoins, an exchange known for over-the-counter trading, and global exchange Bitmex also undertook out KYC improvements.