Fighting money laundering has become harder with the advent of digital currencies. In terms of traditional economics, banks and other serious establishments protect themselves from dirty money by asking for appropriate paperwork: clients should say in detail where they got the money from. Big companies that go in crypto actually want the same — decentralisation is great, but nobody wants to sponsor terrorism, human and drug trafficking, or child pornography, and the court won’t count blockchain as a mitigating circumstance.
A startup from England promises to solve this problem once and forever. It analyses all the digital transactions, finds some patterns and announces the sentences via API, like “this wallet is good, and that one launders money, don’t work with it”. It is expected that the clients follow the startup’s recommendations, don’t mess with sketchy guys, and keep the reputation clean. On the other hand, if your wallet has been accused and you want to prove that you’re as innocent as a newly-born kitten, your life will turn to hell, as you can hardly prove anything to them. The shortcomings of the product’s score system may seem worse that all the bureaucracy in the world, especially taking into account the absence of localisation — so a wallet owner from, for example, Egypt who doesn’t know a word in English will face real troubles trying to reach the company.
The company’s PR service assures that it cooperates with the largest crypto exchanges and all those brick & mortar giants that go in crypto. Well, the only company that 100% works with this newcomer is Coinbase — these two were even involved in a scandal that led to a massive leak of clients’ personal data!
Still, the project lured $23 million of investments in September 2019.
At Tozex, we carefully implement all the anti-money-laundering features, and never let something like that happen to our users!
See more at https://tozex.io
