Joining Forces for a Safer Crypto Space
In a groundbreaking move, risk management giant LexisNexis has stepped in to partner with the Australian crypto exchange Blockbid. Announced via Blockbid’s Medium account on June 4, this collaboration aims to bolster security measures and establish a more trustworthy environment for cryptocurrency trading.
The ‘Trade with Confidence’ Initiative
Blockbid is making headlines as one of the first trading platforms to voluntarily adopt stringent global anti-money laundering (AML) protocols. By leveraging the renowned security technologies from LexisNexis and ThreatMetrix, the initiative dubbed “Trade with Confidence” aspires to combat illicit activities like money laundering, terror financing, and even human trafficking.
How Does It Work?
This innovative technology employed by the Melbourne-based exchange intertwines both physical and digital identity data. Here’s a flavor of what goes into the mix:
- Government-issued identifiers
- Addresses
- Biometric data
- Device identification
- Geolocation findings
- Behavioral analysis
- Threat intelligence
By integrating these elements, Blockbid aims to enhance its Know Your Customer (KYC) measures, elevating fraud prevention while staying in line with banking regulations.
Consumer Confidence is Key
According to Thomas C. Brown, the Senior Vice President at LexisNexis Risk Solutions, equipping Blockbid with similar controls as the world’s biggest banks adds a layer of credibility in the eye of regulators. “This instills consumer confidence and provides a solid foundation on which Blockbid and similar companies can scale and prosper,” said Brown.
The Regulatory Landscape and Crypto’s Reputation
Despite these advancements, the crypto world hasn’t been entirely welcomed with open arms by regulatory agencies. Criticism looms large, especially for its perceived association with illegal activities. Earlier this year, a US Congressman openly dismissed cryptocurrency as a mere “crock,” suggesting its only utility is in fostering misconduct. Simultaneously, a report from the Dutch government acknowledged crypto’s low-risk status yet highlighted its potential for funding illegal activities.
On a more positive note, a report from Hong Kong’s Financial Services and Treasury revealed that cryptocurrencies do not significantly contribute to money laundering. Rather eye-opening was the observation from a former US federal prosecutor, who noted that more criminal activity is supported through traditional fiat currency than through crypto.
Conclusion
As Blockbid takes these big strides towards compliance and security, it’s wrapped in a blanket of skepticism and optimism. The crypto exchange’s partnership with LexisNexis could set a precedent for the industry, showcasing that diligence and innovation can usher in a new era of safety and trust in the digital currency realm.
