Opinion by: Mike Haley, CEO of Cifas
While the Crypto industry revolutionize the world of finance, an underlying reality below the surface is bubbling. Killing record levels, cryptocurrency scams allegedly calculated $ 9.9 billion in 2024 – to read Blekar with a 2025 forecast.
Whether “chronic wine in new bottles”, Ponzi and Pump-Dop Schemes as fraud or new crypto-specific fraud typology, such as addresses, are killing poisoning-inflammatory-cheating epidemical industry.
Criminals are misusing the field to loot the resources generated in the traditional finance (Tradfi) region. This creates complex challenges for firms with syllabus with anti-mani laundering (AML) rules. Eventually, about 90% of Crypto registration applications in the UK fail due to weak AML and fraud control.
Crypto sector abuse
This misuse of the Crypto sector is not being noticed by the hard working industry to clean its image in the eyes of global regulators, many of which are starting looking at the sector beyond the AML perimeter. Efforts by individual firms – such as industry scam equipment and disruption operations – may be laudable thinking, will have limited effects in isolation.
The industry needs a lot more boulder to share satisfactory crime data.
Cross-second public-private data sharing is becoming an ideal in the tradfi sector to deal with fraud. Whether it is a compulsory anti-scam data sharing between financial services and telcoses in Singapore or among the voluntary schemes led by Astrlias and UK, data sharing has been charged globally as one of the major defense against global fraud.
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We can only put a dent in this global crime. As fraud is favorable for the new financial landscape internationally, what is missing in this series is the digital assets community. Bringing the community in existing data-shing efforts will not help in creating a strong ecosystem, but the industry will also benefit.
Principle for action
There are three things that the industry should do.
First, the current limited use of crypto as a mainstream payment medium means that the most committed crypto may not be present in criminal isolation. There are significant contacts in the fight against crupto and fiat currencies on-ramping and off-ramping crypto-linked fraud. To see the watch picture neither with the side, the data failed to share the efforts.
Second, using Crypto in fraud laundering chain makes AML a challenge. The industry needs to be rescued, which requires laundering processes, along with cracking regulators to cut exchanges and new rules. This cannot do so without the required data flow that prevents individuals from entering their ecosystem, data, which they must be source from the price chain.
Third, which will deal with fraud with the digital assets community, is shining, compliance with the region as a profession is a newborn discipline. The industry will benefit from the experience of installing hard data and fraud prevention experts in fields, for which the types of emerging fraud are “business as usual”.
While logic in favor of cross-industry data sharing to prevent crypto-linked fraud is clear, what is the need to implement the principle?
Accelerated cooperation
The UK provides a potential hospitality policy environment for the industry that first follows in cross-second data sharing.
From a legal point of view, the UK Privacy Regulatory, Information Commissioner, an officer, recently said that “data protection is not an excuse when fraud and scams.” This is particularly relative to the response crimes, one of which saw that the scammers stole $ 1.2 million to scammers by presenting law enforcement and crypto wallet as a law enforcement and crypto wallet to talk about the victims in revealing personal information.
The counth may not be evident with the datumination legislative legislative changes in the data secrecy governance.
Next, regulator for digital asset regulation in the UK provides carrots and sticks for prevention of fraud and data sharing. The announcement of the UK Chancellor on future regulation firmly states that digital assets industry will be bound by the same consumer protection rules. It is different to imagine UK consumer protection against fraud without cross-industry data-embarrassing element.
The carrot is also with the Finance Conductor Authority – and the said fugitive property regulator – data sharing is an important tool in the fight against the fraud process laundering, describing data sharing.
Finally, the UK has a rich and establishes financial crime data-sharing ecosystems, with strong public-genes, intra-indestry and cross-system cooperation, intelligence through joint bliss of money laundering intelligence taskforce. The opening of these integrated to the digital assets industry has already begun, and with some government and regulatory support, it can be intensified.
Crypto and Digital Asset Community Knowledge only to do well -being and regulatory RICC introduced by fraud ageni. But the recognition alone is not enough, and the efforts should not be silenced. Cross-IndiaDest data sharing effective fraud prevention is an important promoter of workwide. Given the conductive environment of the UK, it is placed to lead specificly to lead.
By opinion: Mike Haley, CEO of Cifas.
This article is for genealogy information purposes and is not intention and should not be taken as legal or investment advice. The idea, however, expressed opinions here alone of the author and not necessarily reflected or represented the ideas and ideas of the coinletgraph.