Tightening Security Measures
The Financial Action Task Force’s (FATF) persistence to establish strict crypto regulations across the globe has weighed down on exchange platforms who have, to date, been following the lax approach. The FATF has, on multiple occasions, stressed the risk of use of digital currency for money laundering and terrorist financing.
Under mounting pressure from the intergovernmental body, a number of countries including Russia and Pakistan have begun developing strict AML laws to ensure that cryptocurrencies are not used for illicit purposes.
In the same vein, Bittrex has decided to implement IdentityMind’s Digital Identities Platform for both its Bittrex.com and Bittrex International platforms. The partnership is expected to strengthen the exchange’s security measures and will hopefully rebuild trust in exchange platforms which have been considerably dented courtesy of recent unfortunate events.
It’s worth pointing out that in April 2019, the exchange’s application for New York City’s coveted BitLicense was rejected by the New York Department of Financial Services (NYDFS) on grounds of “below-par policies and controls pertaining to Anti-Money Laundering (AML), Know Your Customer (KYC), and Office of Foreign Assets Control (OFAC) standards.”
The latest move by the Seattle-headquartered exchange could well be called a move towards redemption by showing the regulatory bodies its commitment towards customer safety and international compliance.
Commenting on the development, Bittrex CEO, Bill Shihara said:
“At Bittrex, we have gone to great lengths to implement an AML compliance program in order to help prevent, detect and remediate suspicious behavior.”
“With headquarters in the U.S., our expansion into Europe, and a growing network of partner platforms around the globe, we were looking for a state of the art technology to make our compliance posture worldwide even stronger.”
Similar sentiments were echoed by IdentityMind’s President, Garrett Gafke. He opined that IdentityMind is always on the lookout to invest in ventures where the client is willing to automate their transaction monitoring process in a cost-effective and compliant way.