Thousands of users face risks associated with accepting “shadow” assets every day. This can lead to serious consequences, including financial losses, account blocking, and even criminal liability. In some cases, users may become targets for fraudsters, lose all their funds, or even be arrested for money laundering related to terrorism or other crimes.
The well-known Ukrainian online exchange monitoring service Obmify, which has established itself as a reliable and safe aggregator, knows how to protect the money and nerves of customers with the help of the latest AML service. In this article, we will consider what AML verification of cryptocurrency is, why it is needed, how dirty crypto is laundered, and how the ACL service recommended by Obmify helps prevent unpleasant situations.
What is AML verification of cryptocurrency?
AML (Anti-Money Laundering) is a set of procedures, regulations and laws aimed at preventing money laundering and terrorist financing. In the context of cryptocurrency, AML verification means analyzing and confirming the “purity” of digital assets arriving to your wallet.
Cryptocurrency Verification: Why is it Necessary and Why is it Important?
In the crypto world, every transaction is recorded on the blockchain, which allows tracking the movement of assets. However, without AML verification, it is impossible to determine whether these transactions are related to shadow activity. Checking cryptocurrency means avoiding connections to unwanted coins or tokens obtained dishonestly, which can lead to blocking your wallet or even legal liability. By the way, according to Ukrainian law, accepting “shadow” coins or tokens may result in legal liability.
How is “dishonestly obtained” cryptocurrency laundered?
Laundering “shadow” crypto involves a series of transactions to hide its origin. The digital coin or token can be moved through various crypto services and platforms in order to create a complex chain for investigation. Such procedures can include mixers, decentralized exchanges, or even bank accounts to exchange for fiat currencies. This creates additional risks for clients who may unwittingly become participants in dubious transactions.
How to protect yourself from “dubious digital transfers”?
To avoid legal issues and prevent blocking or loss of digital assets, users are advised to use AML verification services.
Such services are built into centralized crypto exchanges like Binance and White Bit. But there are a number of objective reasons why not everyone likes centralized large exchanges. Firstly, this is the mandatory KYC. Exchange KYC means disclosure of personal data, and given the cases of blocking clients' bank accounts in Ukraine for certain offenses, one can predict the blocking of accounts on exchanges in the near future. Passed KYC = ceased to be an anonymous client. Secondly, centralized exchanges do not ensure transparency of their actions and act at their own discretion, which often compromises blockchain technology as a whole.
Cold and decentralized wallets that do not require KYC do not have built-in AML verification. Instead, decentralized wallet users can be confident that their digital assets will not be blocked by any specific regulator, and decisions on associated risks can be challenged based on the results of analysis of various external AML services. One of such services is the ACL service recommended by Obmify.
How does the ACL service work?
This is an innovative system for analyzing data in various networks. At the moment, a user interface is available in the form of a telegram bot (running on the basis of analytics received from ACL), using which you can minimize the risks of unwanted digital transactions. The main functionality of the service includes:
Wallet check: analysis of wallet activity for connections with questionable, shadow, fraudulent digital assets (a complete list of all labels on the site).
Transaction verification: analysis of digital assets involved in a transaction for the presence of an undesirable mixture from dubious sources.
Setting the wallet to automatic verification: regular analysis of the wallet for new incoming transactions, which is very important for setting up automatic processing, for example, for exchangers.
AML investigation: assistance with preparing reports for analytical and regulatory authorities.
The company provides services to both individuals and business clients. It is worth noting that for individuals, the system provides the first three AML checks for free, while subsequent AML requests start at $1/item. This is how much peace and confidence when working with crypto costs.
What should you do if you have become a victim of a scam?
If you have become a victim of a scam or theft of funds, it is important to act quickly:
- Order an AML investigation of a “dubious” transaction via the ACL service. Collect all the evidence and contact law enforcement agencies to open a case.
Practice shows that with such an examination, specialized agencies quickly take up the case, because they have the opportunity to immediately analyze the results of the AML examination.
Even if part of the digital assets passed through a centralized exchange, then through KYC you can “extract” information about the intruder. We remember about KYC and transparency, right?
Conclusion
Obmify, as a well-known and safe monitoring of online exchangers, recommends using the ACL service to minimize the risks of losing money through the acceptance of “shadow” crypto. This service provides clients with the opportunity to check their wallets, transactions and avoid problems with the law. ACL supports the idea of decentralization and is an integral part of the modern cryptocurrency market, meeting the needs of clients for security and financial transparency. Remember, when dealing with cryptocurrency, you take responsibility for the purity of the funds on yourself.
- Cryptocurrency