Hong Kong-based cryptocurrency exchange Gatecoin has partnered with the popular risk and compliance platform Coinfirm to manage its anti-money laundering practices.
The partnership will improve Gatecoin’s existing anti-money laundering (AML) and know-your-customer (KYC) practices by integrating Coinfirm’s ‘AML Platform’ into its services, which offers added security and simplified customer registration.
London-based Coinfirm offers network analysis and monitoring across a number of blockchains using bespoke algorithms and over 200 risk indicators. Its systems are designed to automate and reduce the complexity involved with financial compliance. The company works with both digital and traditional financial institutions with an aim to drive the adoption of blockchain technology in a secure manner.
The new partnership will also give Gatecoin access to Coinfirm’s AMLT Network, which works to reduce risk and increase transparency by rewarding members for providing information on hackers and fraudsters in the financial world.
With crime in the crypto space increasing, there has been growing concerns to improve the legislation and regulation of cryptocurrencies. Earlier this week, crypto exchange giant Bitstamp announced its partnership with identity verification platform Irisium to upgrade its KYC and AML services.
In a recent interview, CEO of virtual currency exchange ShapeShift, Erik Voorhees, commented on how he believes the new legislation, while necessary, is an “Orwellian construct to basically enlist private companies to do government surveillance”.