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CipherTrace: 56% of bitcoin exchanges do not verify customers

More than half of the 800 crypt currency exchanges in 80 countries do not comply with KYC/AML measures. This was reported by the analytical company CipherTrace.

According to statistics from CipherTrace, 60% of the top 10 stock exchanges with insufficient KYC are located in Europe, 20% in Latin America and the Caribbean, and the last 20% in Asia and the Pacific.

Europe is leading the way despite the adoption of the Fifth Anti-Money Laundering Directive (AMLD5), analysts say.

In Africa, KYC regulations do not comply with 70% of trading platforms, most of which Bitcoin Benefit  are located in the Seychelles, making the country potentially attractive for money laundering.

Of the decentralized exchanges, more than 90% have implemented insufficient KYC measures, while 81% have virtually none.

In terms of countries, the worst situation is in the USA, Singapore and the UK, as more sites are concentrated there.

Analysts point out that KYC measures are only one factor in assessing the overall risk of Bitcoin exchanges, but the report makes it possible to assess the potential for the laundering of cryptographic currency in each country.

Earlier, CipherTrace said that in 2019 about 74% of bitcoins in inter-exchange transactions were moving across borders. In their view, this carries the risk of money laundering under conditions of insufficient KYC/AML measures and puts banks in jeopardy.

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