In line with a recent cryptocurrency exchange risk report published by ‘Coinfirm’, solely 14% of total 216 global cryptocurrency exchanges were confirmed as being authorised by regulators.
Coinfirm – A London based regulatory technology firm for cryptocurrencies and blockchain, studied around 216 worldwide crypto exchanges to stipulate the key risks associated to every platform, as well as assist monitors in developing required regulative frameworks. The analyzed exchange’ reportedly represent over 90% of global cryptocurrency market activity.
Within the study, Coinfirm classified the exchange’ into seven classes of risk, as well as license and authorization, CDD [Customer Due Diligence] and KYC [Know Your Customer] compliance, AML [Anti-Money Laundering] compliance, sanctions, senior public figures, jurisdiction, and negative and adverse media.
The study revealed that around 69% of exchange’ don’t have “complete and transparent” CDD and KYC procedures, whereas solely 26% introduced AML procedures like observing transactions or recruiting a money laundering officer.
Coinfirm additionally found that around 40% of the analyzed exchanges don’t support standard fiat currencies and conduct exchanges solely between crypto assets. Of the remaining 60% that don’t offer fiat exchange’, solely 23% had full KYC processes that supported both deposits and withdrawals for crypto and fiat currency transactions, the report added.
Moreover, Coinfirm provided the common composite risk performance of exchange’ in specific jurisdictions, with the low-risk countries like Australia, Norway, Sweden, Finland, Germany, Switzerland along with others. Among the risky nations, the list includes Russia, Belarus, Ukraine, Iran, several of African countries, and others.
The U.S., Canada, U.K., Brazil, China, India, Saudi Arabia were marked beneath medium risk zone.
Binance – The leading cryptocurrency trading platform by daily transaction volumes, was evaluated as a high-risk exchange because of an extended lasting time period of exposure to anonymous cryptocurrencies like Monero [XMR] and ZCash [ZEC], the report added. Coinfirm added that the exchange gave the impression to oftenly changing jurisdictions, that infers potential regulative arbitrage.
Recently, Binance ‘partnered‘ with risk management and compliance firm named ‘IdentityMind’ to address data security & compliance measures for Binance’s global operations by deploying IdentityMind’s KYC and AML compliance tools.
Just today, chief executive officer of Binance exchange named ‘Changpeng Zhao’ added that the recent reports on faux trading volumes on CMC [CoinMarketCap] might be indeed helpful for the growth of industry..