AML in Cryptocurrency 2018
What is AML in Cryptocurrency 2018?
The world is talking about the cryptocurrency regulation. The giant companies are adopting the cryptocurrency as a payment gateway. The only risk with the adoption of cryptocurrency is its anonymity. The only solution to the anonymous transaction is proper regulations. AML is one of the most discussed factors in terms of cryptocurrency regulation.
What is AML in Cryptocurrency?
The full form (meaning) of AML is Anti Money Laundering. As the name suggests, it’s the set of rule that helps in preventing the transfer of money anonymously(Thereby concealing the source of illegally gotten money).
AML rules are playing an important role in regulating the cryptocurrency space. With billions of dollars being invested in the market from different sources. The Government and financial institutions feel the need to carefully monitor the space.
On the other hand, AML rules go against one of the biggest initial philosophies of the blockchain which is the anonymous technology behind the cryptocurrency.
According to anonymous cryptocurrency philosophy, you can transfer your digital currency anonymously. But AML will never allow the crypto users to transfer the funds anonymously.
The Cryptocurrency transactions are totally anonymous and no one can trace them. The issue is a big headache for regulators as there are doubts that criminals could take advantage of such a system.
AML is a set of rules that refers to a variety of regulations that are enacted to stop the transform of income via illegal transactions.
The government and financial institutions are responsible to design a regulatory framework that makes it difficult for individuals involved in illegal and illicit actions to convert money gained under illegal money into legitimate assets.
The mainstream financial ecosystem has been advanced in such a way that there are several checks and balances that assists in preventing money laundering.
The advanced countries are working on regulating the cryptocurrencies. Countries like South Korea, the United States, the United Kingdom, and the European Union are working to regulate the cryptocurrency through KYC and AML.
The European Parliament in combination with the European Central Bank passed a ruling in 2017 that would present strong KYC(Know Your Customer) and AML rules into the crypto market.
The ruling is currently being ratified by the various member countries. Countries like France, South Korea, the United States, and even Japan have also made efforts to improve the KYC and AML rules in operation in the crypto markets of their respective countries.
The world is adopting the cryptocurrency. Regulation for cryptocurrencies is making their way to market. We also need to hold some crypto assets. They are obviously going to provide us with a bright future.
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Source: www.onecoinpk.com