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Major cryptocurrency organizations are tired of criminals poaching on their turf, and they’ve banded together to take a step towards halting this trend.
According to a report on news medium Bloomberg on May 8, a group comprising some of the biggest names in the crypto industry have conferred to discuss the possibility of creating a blacklist containing some of the most popular criminal organizations whose activities are besmirching the good name of digital assets.
Per the report, the meeting was held in Chicago on May 7, and it included traders from as many as 35 crypto firms and organizations, including but not limited to Galaxy Digital Holdings, XRP developers Ripple, Cumberland (the cryptocurrency trading subsidiary of trading giant DRW Holdings).
The attendees reportedly proposed to create a “blacklist,” which would contain the names of individuals and organizations who engaged in nefarious and dubious activities within the crypto space. Some attendees also reportedly suggested the creation of an accreditation process for companies which were “in good standing.” Another suggestion comprised of developing a binding standard for verifying sources of funds and customer identities.
Criminals and unsavory activities have long plagued the crypto industry, threatening its credibility and undermining its push for mainstream adoption. Ever since cryptocurrencies were first introduced a little over 10 years ago, numerous reports have surfaced tying them to various cases of money laundering, terrorist financing, and fraudulent activities.
The characteristics that make digital assets so attractive to businesses and investors are the same ones which have fueled their increased use for illegal purposes. They’re anonymous, decentralized, and can be transferred within a matter of hours without the need for a third-party or traditional payment processor.
With all of this, criminals can easily pay for purchases and conduct their business smoothly without oversight from any financial or legal authority
As a matter of fact, Bitcoin (BTC), the most popular digital asset in the world by a mile, has been regarded as the preferred means of payment by criminal organizations on the Dark Web. While the increase in popularity of these assets has also brought about innovative ways of tracking asset transfers and capturing crypto criminals, the truth is that we’re still a very long way from a world where cryptocurrencies can be used solely for transforming the global financial landscape and nothing more. At this rate, that might just be a fanciful outcome. However, the seeming impossibility of a crime-free crypto industry isn’t stopping these organizations from attempting a solution.
While the Bloomberg report claimed that there was no definite conclusion reached at the meeting, it does also point out that there will be subsequent meetings on how to best tackle the issue of crypto-fueled criminal activities.