The crypto industry has always struggled when it comes to money laundering instances, including numerous threats and hacks taking place ever so often. Ripple seems to have taken a big move to avert such a scenario with its latest partnership with Coinfirm, which is a start-up in the regulation technology space. Coinfirm offers anti-money laundering (or AML as widely referred to) services that help detect if coins have undergone a suspicious transaction.
Thanks to the partnership, Ripple will now be able to exactly know how XRP, its native token, and the 3rd biggest digital currency in the market, is being utilized. It will become possible for Ripple to determine whether certain XRP tokens were utilized for the purpose of money laundering or not. It must be noted that XRP is valued at more than 20 billion dollars at present, as per the Forbes reports.
In addition to that, Ripple’s move in all probability will help it to fully comply with the latest FATF, short for Financial Action Task Force, regulations which were issued in the recent past. As per the reports, Coinfirm will be providing details on if a mixer processed the digital currency or it made way for itself from theft or a hack, among other things.
What is interesting here is the fact that though Coinfirm will be offering such vital information, it will not disclose the real identities that are associated with the public address. The start-up will just offer key information about the risk profiles of the concerned entities owning the particular addresses. If that was not all, Coinfirm will also be lending a helping hand to determine whether a crypto exchange which facilitates anonymous trading activity owns an address. Additionally, it will help ascertain whether the entity owning the address has its registration in a ‘high-risk’ nation. The report will grade the addresses as a high-risk, medium, or low on a scale of 0-99 wherein 99 indicates the highest risk in terms of money laundering.
Pawel Kuskowski, the CEO of Coinfirm, was quoted as saying,
“I don’t know who you are personally. We don’t do any personal data.”
Continuing further, he stated that they argued with FATF that it was thoroughly and effectively sufficient.