Cryptocurrencies
Booming Decentralized Finance a Potential Haven for Money Laundering
- Report finds most crypto services have inadequate controls
- Regulators looking at problem firms: ‘The eyes are upon them’
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The booming world of decentralized finance, which has collected more than $11 billion in cryptocurrencies in a matter of months, is a potential haven for money laundering, according to new research.
Globally, 56% of digital currency services have weak or porous “know your customer” controls, blockchain security firm CipherTrace said Thursday in a report. KYC procedures are meant to confirm the identity of users to prevent laundering. Dave Jevans, chief executive officer of CipherTrace, said regulators will be looking more closely at decentralized finance because of its astounding growth.