The rise of cryptocurrency and illicit transactions
July 8, 2022
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With crypto being used for illicit transactions, what can service providers do to protect the parties involved as the currency continues to surge in value?
No sign of crypto cooling off
In the past year alone, there has been a virtual explosion in both interest and value of cryptocurrency. Bitcoin, perhaps the most mainstream and commonly traded currency of them all, hit a record high price of more than $61,000 in March of 2021. Add the incredibly unexpected and meteoric rise of the meme-like crypto asset dogecoin fuelled by everyone’s Reddit favourite Elon Musk, the very recent and celebrated Coinbase IPO, and it becomes evident that the world of cryptocurrency is hotter than ever.
But with this sudden rise and increased value comes the rising risk of serious digital crimes, and governments around the world may very well start to clamp down on the usage and trading of cryptocurrencies to control the proceedings and better protect transactions, businesses, and individuals across the globe.
While cryptocurrencies have long been associated with illicit activities since people transacting with it are pseudonymous, most crypto money laundering is concentrated in a select few online services. Without specifically naming names, this includes services like high-risk crypto exchange portals, online gambling sites, and cryptocurrency mixing services. The more common criminal activities include online scams, ransomware attacks, hacks, transactions linked to child abuse materials, dark web exchanges, dealings with illegal drugs, weapons, and data.
While a fairly major global and well-orchestrated law enforcement action against a few established cryptocurrency operators may temporarily cripple the movement of illicit funds, there is a simpler and more clear-cut solution; convincing large companies and individuals to enforce anti-money laundering policies and other anti-theft solutions.
Prevent and eliminate illicit transactions with ZignSec
With the rise in usage and value of cryptocurrency comes the need to keep all of the parties involved safe. Here at ZignSec, we have industry-leading and proven “Know Your Customer” (KYC) solutions that are designed to keep you safe in the ever-growing digital jungle. Whether you’re looking for an eID or an Online ID verification solution, our platform supports a plethora of different document types and can be used in more than 170+ countries across the world.
Let us show you what we can do
To learn more about the world of cryptocurrency, digital safety precautions, and ways to keep you and your business up to date, please contact us at firstname.lastname@example.org today. We are here to help and will forever strive to keep the digital world as safe as it can be.
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