The black side of using XRP coins

Judy Rubio

Elliptic experts have organized monitoring of transactions in the XRP digital currency. They found hundreds of accounts that were linked to illegal activities.

A significant portion of XRP transfers worth more than $ 400 million are linked to financial pyramids and other fraudulent instruments. Illegal transactions account for about 0.2% of the total coin trading volume.

Tom Robinson, who is one of the founders of Elliptic, said that the XRP token is often used in dubious schemes for quick earnings, but Bitcoin is usually used by darknet marketplaces. The expert noted, "I think XRP owners are often retail investors. This explains why scammers are so active towards them."

Mr. Robinson noted that the development of a solution for monitoring XRP operations needed more time in comparison with a similar service for Bitcoin or Ethereum due to the peculiarities of the cryptocurrency structure. In the summer, Ripple signed a contract with Coinfirm, which is aimed at controlling the use of the XRP token. In the article “Ripple bought MoneyGram shares”, you can learn about other achievements of the California fintech company.

Ripple listens to FATF recommendations on controlling XRP operations

California-based financial technology company Ripple has signed a contract with FINTECH startup Coinfirm to provide control over the use of the XRP coin. The information will be obtained in order to combat money laundering using Ripple.

For example, Coinfirm will notify you if transactions are confused via mixer services, or if they are part of the same cluster, where small amounts are sent to different recipients to hide the size of large transactions. In addition, actions will help detect theft and break-ins.

The data that Coinfirm collects will not include identification information associated with public addresses used for storing digital assets. Still, information about whether the address belongs to the crypto exchange will be collected. This is true even if the platform allows trading anonymously or the address is registered in a "high-risk" state.

This initiative was announced a few days after FATF published changes to its rules for cryptocurrencies. For example, Bitcoin exchanges and other digital money service providers are required to follow CFT and AML procedures. This should be executed in the same manner as classical financial organizations.

Pavel Kuskovski, who heads Coinfirm, noted, "We do not collect any personal information. We intend to convince FATF that this data is completely sufficient." The top manager called the first stage "blockchain deconstruction", which is aimed at establishing unique parameters of payment systems. The company used the anti-money laundering procedure that is used for other digital currencies. When data was collected within 2 weeks, it was extrapolated to estimate addresses.

Mr. Kuskowski said that ripple's AML support will be used for every Coinfirm user. The service will be provided at no additional cost.

FATF has increased control over the crypto industry

FATF is a group for creating financial measures aimed at countering money laundering. The organization has increased the regulation of the crypto industry, it has obliged platforms and other providers of cryptographic services VASPs to follow the CFT and AML procedures.

Representatives of the crypto industry warned about the negative consequences of such a decision, but the group did not change its decision. The regulator has required users to exchange information if transactions are made between trading platforms.

Regulators of states that have signed a FATF participation agreement are required to comply with the requirements and make sure that all VASPs store and exchange such information. The group will conduct a review next summer.

Ripple Chapter: I'll give the case to Libra's champagne Manager

Brad Garlinghouse, who heads the financial and technology company Ripple, noted the maximum influx of new customers in the conditions of Facebook's announcement about plans to release its cryptocurrency. According to him, the announcement of the release of the Libra cryptocurrency led to the fact that financial institutions are thinking about using xCurrent SOFTWARE for Bank payments and XRP coins for transfers between countries.

The head of Ripple noted that in the new conditions, large banks can explore the possibility of changing the classic SWIFT software to alternative technologies. He commented on Facebook's offer, "This statement served as an incentive to action." According to him, this week turned out to be the best in terms of the number of contracts signed by Ripple for the entire time of the company's operation.

Mr. Garlinghouse continued, "David Marcus, who runs Libra, deserved a case of champagne. And I'll send it to him!» The head of Ripple explained the lack of an increase in the rate of the coin with a lot of noise. He stated, "I think it's really difficult for people to determine what is noteworthy and what is not more than noise. This partnership is a major milestone for Ripple. In the future, there will be no doubt that this step has become important for the entire crypto industry."

Ripple is serious, and this is clearly visible. It is looking for new opportunities for its promotion, taking care of compliance with regulatory requirements. Therefore, investing in XRP cryptocurrency is justified and far-sighted. Why not buy coins for the future of their growth and subsequent earnings?