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The Hidden Effects of Crypto Money Laundering

James Dendson



Since the flows of digital money around the globe, as well as the terror and rising crimes alongside cartels, have made dialogues and added urgency to rules and guidelines from government-owned organizations as well as national organizations.

The separation of money from its origin came originally from the moment Emperor held up a coin(gold) which came from the collection of taxes from urine, hence it’s origin.

Examples of rules made include a Europe law that will definitely end up affecting Crypto businesses around the globe. Sings shown recently from other jurisdictions also point that attention around this issue has increased. So as to obey stipulated regulations, the short term pain in terms of higher costs and lower privacy calls for concern still there are signs they still don’t understand how the technology works
But longer-term, even the most onerous requirements will end up evolving and are likely to stimulate sector development in unexpected ways.

The European Parliament and Council published an update to the bloc’s anti-money laundering (AML) directive in June 2018. Known as AMLD5, the deadline for its implementation is January 2020, less than a year away. *Pheww*

Under the new rules, it states that all crypto exchanges and wallet custodians operating in Europe will have to implement strict know-your-customer (KYC) onboarding procedures and will need to register with local authorities. It also states that they will also be required to monitor transactions and to report suspicious activity to the relevant bodies if not face the consequences.

Also adds that national authorities, tax collectors, will be able to obtain crypto user information from the relevant exchanges.
These concerns are not just limited to Europe. Bittrex, a US-based Crypto exchange was denied license due to the know – your – customer rule

On a larger scale, in December 2018, the G20 nation leaders reiterated their pledge to develop comprehensive AML rules for crypto assets. And the Financial Action Task Force (FATF), an inter-governmental body set up in 1989 to tackle money laundering, is due to publish guidelines and enforcement expectations for crypto exchanges around the world by June of this year.

A draft of the FATF proposals was released in February, cryptoanalytic firm Chainalysis responded to this draft, pointing out that it is not always possible to know the customer’s details, and in most instances, an exchange does even not know if the destination is an exchange wallet or a personal one.
As Chainalysis pointed out in its FATF comment, effective use of blockchain technology would make it much harder to launder money using cryptocurrencies than digital fiat money and would enable market participants to simultaneously collaborate with law enforcement while complying with trends in privacy legislation.

Seeing this the EU Commission, on the other hand, seems to be aware of this and has been mandated to present, by early 2022, a further set of amendment proposals concerning self-reporting by virtual currency owners, and the maintaining by member states of central databases with users’ identities and wallet addresses.

Others have expressed their concerns that these rules will divert transactions to the less transparent crypto-to-crypto and/or decentralized exchanges that fall outside the scope of AMLD5.

And there’s the business risk, too: Operating expenses are a worry for any project, and the growing burden of reporting requirements could slow down the growth and professionalization of market infrastructure.

Despite the fact that the concerns are valid, intensifying AML attention is more likely to help the sector than harm it.
First, the AMLD5 states in law what is probably the first “official” definition of cryptocurrency:it explains it as “a digital representation of value that is not issued or guaranteed by the central bank or any public authority, is not necessarily attached to a legally established currency and does not possess a legal status of currency or money, but is accepted by natural or legal persons as a means of exchange and which can be transferred, stored and traded electronically.”

The usage of the phrase “means of exchange” could end up giving users support from which to construct further innovation, and regulators a base from which to develop more detailed definitions.

Growth in the liquidity of cryptocurrencies will boost more than their price: It will also boost interest in and feasibility of using the underlying technology for tracking purposes.
Sharing a wallet address with a person in the market is not the same as a personal address which allows one to identify information and does not trigger Europe’s laws. However, this would make it easier for law enforcement to monitor and track suspicious activities.

What’s more? With blockchain-based assets, prosecutors now have access to a much deeper data trail than with fiat currencies. And this should provide a more holistic view of patterns, enabling enforcement officials to develop strategies that could further reduce the cost burden of the surveillance.
With this Cryptocurrency may be seen as the cleaner if all regulations are followed. This will encourage market participants to recommend the adoption of money transfers across the world. This could be a supportive innovation around money as long as it is official even from central banks, which in turn would accelerate the transformation of the banking industry as we know it.

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Global funds network Calastone is basing its whole system on Blockchain

James Dendson



Calastone, the company for the transformation of digital funds worldwide has decided to revolutionize its system by replacing it entirely with its fund trade clearing services based on blockchain.

The reports state that the largest community of global financial services has been formed using blockchain technology through the migration of more than 1,800 customers of the company in 41 markets. The effectiveness and speed of transactions using Distributed Market Infrastructure has broken the efficiency schemes within the company. It is estimated that after taking this measure, it will be possible to save revenues for market funds close to $ 4.33 million annually.

The report states that financial services around the world can use DMI to access a fully mutualized global funds marketplace whereby the trading, settlement and funds servicing is conducted in real-time, regardless of their size or reach.

This system change can also mean the creation of a real-time shared view of all historical records between trading partners at any point in the distribution chain, breaking down the most salient details for financial operations and optimizing investment fluidity.

Calastone said at the end of last year that these modifications would be applied in May of this year, so very soon investors can start enjoying this new system based entirely on blockchain.

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Starbucks will use Blockchain to store coffee data

James Dendson



The international coffee chain decides to take a step towards the new generation by using a blockchain system to store information corresponding to its coffee products, from the moment the beans are obtained in the field until it is served at the table.

Starbucks seeks an alliance with Microsoft to track the supply chain through the Azure blockchain service. This system will allow the tracking of all coffee shipments around the world. The project will allow a digital record of all coffee products to be kept, which will improve the quality and control of the service.

Microsoft will offer its blockchain system to record all the events and changes made during coffee production, thus giving greater control to the supply chain of the products it will be handling. The obtained information will be stored in a shared ledger for continuous evaluation.

Why is this needed?

This new update in the Starbucks system aims to bring new features to its mobile application, since it will provide users and customers with all the information regarding the products they are consuming; From what type of grain it is, where it was harvested and reviews about its flavor. This information will allow consumers to have a more personal experience and get them to choose exactly what type of coffee they want to take.

The tracking of the coffee through Microsoft’s blockchain service will also allow granting a massive amount of information to the farmers, which will improve their procedures, methods and living conditions. Starbucks has established an exceptional brand in coffee harvests, having managed to extract grains from more than 380,000 coffee farms last year.

Senior Vice President of Global Coffee & Tea at Starbucks, Michelle Burns, said:

“This kind of transparency offers customers the chance to realize that the coffee they enjoy from us is the result of many people caring deeply.”

Starbuck’s new blockchain based service has not yet been officially launched, although the shareholders could get to know a demo version during the chain’s annual meeting in March.

Burns said the chain seeks to improve working conditions on farms in Costa Rica, Colombia and Rwanda, leading to a better experience for both the worker and the customer when testing the final product.

Starbucks also confirmed that they are working on including cryptocurrencies through payment platforms that will be developed by International Exchange. The coffee giants will seek payment facilities for Bitcoin and Altcoins holders in order to convert their assets into dollars at the time of payment.

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U.K.’s Corporate Traveller will let you pay for your flights in Bitcoin Cash

James Dendson



The crypto market has been in constant growth since the last 10 years, boosting the applicable uses for Bitcoin and Altcoins that will be more tan just “digital Money”, they constitute an efficient payment system that can be used by anyone. The UK’s largest travel management company “Corporate Traveller” has announced that it will accept Bitcoin Cash as a payment method for companies seeking to book business flights for their staff.

Small and medium companies can count on Corporate Traveller in U.K to buy air tickets in Bitcoin Cash and Bitcoin through Bitpay. This division of Flight Center Travel Group has more than 20 offices in different locations in the United Kingdom has taken this step intelligently to expand the financial limits of the company and enter thefuture of the economy.

The General Manager of Corporate Traveller in UK, Andy Hegley, said:

“We’ve identified an increasing demand from our clients for the option to pay in BTC for business travel bookings made by our travel consultants”.

Hegley also adressed that the Blockchain industry is growing exponentially and they are very happy to offer payment alternatives in cryptocurrency, while ensuring their income in pounds sterling thanks to Bitpay. This measure only scratches the surface of a long list of options that can be considered to implement crypto and blockchain to the Corporate Traveller system. Crypto enthusiasts considered this as great news for the United Kingdom, since it is the first British company to provide this type of services to clients that handle Bitcoin revenues in the travel industry.

The travel service provider considers the Bitpay mechanism a fast and secure way to process payments and invoices, since the customer can make the transaction at any time from an office or smartphone. It takes only two bussiness days for Corporate Traveller to receive the payment into their bank accounts.

Although this new measure supports the decentralized sectors of the economy, it does not mean that the company seeks to disengage or stop working with regular banking transactions, on the contrary, it is an effort to provide the client with the facilities to able to make payments without setbacks and in safe grounds, this is achieved by getting the most out of Blockchain’s wonderful principles.

New announcements are expected involving crypto solutions for different industries that decide to incorporate blockchain for financial activities and data storage.


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