Ripple, has joined forces with AML (Anti Money Laundering) solution provider, Coinfirm. The reason behind this partnership is to allow Ripple’s default currency, XRP becomes compliant with the new FATF (Financial Action Task Force) rules. Based in London, England, United Kingdom, Coinfirm is a startup company that is quickly making its mark as a technological solutions provider for cryptocurrency companies helping them comply with regulatory requirements.
What this partnership will do is that Coinfirm supplies information related to anti-money laundering regulations to Ripple. For instance, Coinfirm will display whether a so-called mixer is processing a transaction or whether it is linked to a hack, a technology that is commonly used by money launderers.
Who is CoinFirm
Launched by AML/CTF experts, Coinfirm is a UK-based company that specialises in anti-money laundering systems and other compliance systems.
The Chief Executive, Pawel Kuskowski, is a renowned anti-money laundering expert, whose CV boasts mega organisations such as Royal Bank of Scotland, where he operated in the capacity of chief manager of global AML/CTF. Pawel is also the Chairman of Poland’s Compliance Association.
Their network, uses large-scale data analysis and trademarked algorithms to provide useful data, which in effect reduces costs and streamlines compliance issues for corporate clients. The Coinfirm platform also offers safe and secure cryptocurrency transactions for private individuals.
Currently, Coinfirm’s API (Application Programming Interface) is linked to almost all blockchain exchange platforms, automatically providing AML evaluation services to clients for every transaction. The counterparty’s assessment is done in real time by the Coinfirm’s engine, and results are availed within a few seconds. Thanks to these capabilities, virtual currency exchange platforms can quickly and automatically determine whether transactions are safe to execute.
Why is Anti-Money Laundering important in the Cryptocurrency Market?
When Coinfirm got launched about three years ago, different people in the crypto space had different opinions about the firm. The hardcore crypto people disagreed with it stating that crypto was not created to have AML processes in its operations as they believed crypto was developed as a money-laundering machine.
But contrary to that belief, it is impossible to ignore the world of standards and practices when it comes to mass adoption.
FATF New Regulations for the Global Crypto Industry
The Financial Action Task Force (FATF) is reportedly going to publish a communication that will clarify how participating nations should exercise oversight for the virtual currencies industry in their countries. According to FATF spokesperson Alexandra Wijmenga-Daniel, the conversation should be out anytime as they believe it is long overdue and its time has come.
The new regulations will apply to a broad scope of businesses that deal with virtual currencies and tokens, including crypto exchange platforms, hedge funds, and custodians.
The Financial Action Task-Force is a geopolitical body that was constructed to promote and maintain legal, regulatory, and operational standards that seek to fight money laundering. The FATF is a G7 initiative.
At present, the FATF has come up with a series of recommendations that act as the universal standard for fighting the financing of illicit activities and money laundering. Currently, these recommendations are followed by over 150 countries globally, including the United States. And now by joining FATF, apart from other long-term benefits for its growth, Ripple admittedly has taken a good step forward to make XRP holders feel more confident about their investment.