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EXMO Strengthens The AML Process With CipherTrace Service

Today, no one will argue that the cryptocurrency market has significantly grown in the past years. Over the existence of the industry the main point against cryptocurrencies was   the use of them in illegal activities. And the market has reacted: the number of instruments that exist today vividly confirms that the stage of the “wild west” for cryptocurrencies is coming to a logical end.

The EXMO team and its expertise have been growing along with the market for the last 6 years since the project was created. We feel some kind of responsibility to the crypto industry: the fact of how the market participants respond to existing challenges determines the global development of the industry.

There is a  special department at EXMO that is detecting unusual transactions, which may indicate inappropriate use of the platform. This department operates in a 24/7 mode: 24 hours a day, 7 days a week and 365 days a year. Via automatic alerts and manual transaction checks, we make everything to ensure that our audience is the cryptocurrency traders, who bring the crypto market closer to the trading with classic financial assets.

EXMO Cryptocurrency Platform is an international company, which connects traders from different regions of the world. At the same time, EXMO interacts with government representatives on all official requests to legal@exmo.com, support@exmo.com, as well as at the physical address of our office in London.

We don't stop on this, because we believe that the cryptocurrency market should be cleared of "bad" players. And along with the advent of regulation, there will be a global adoption of the industry which we are in since such an early stage.

EXMO Cryptocurrency Platform has signed a contract with the leading global analytical company CipherTrace to optimize AML processes.

About CipherTrace

The CipherTrace system is monitoring cryptocurrency flows and assigning risk levels from 1 to 10 to wallets depending on whether this address was receiving/sending funds, which were previously seen in use by drug stores, terrorist organizations, scam projects or mixers.

Moreover, the CipherTrace system has all wallets of worldwide exchanges marked, which allows you to determine the route of funds accurately. This is the reason why this product is also being used by many government agencies in their investigations related to the use of cryptocurrencies for criminal purposes.

Here are a few examples of how it works:

The CipherTrace system assigns the highest risk level to such a wallet:

It also flags all chain-related wallets:

CipherTrace uses machine learning to deanonymize blockchain transactions and control cash flow. The company was founded in 2015 by experienced Silicon Valley entrepreneurs with in-depth knowledge of cybersecurity, online crime, payments, banking, encryption, and virtual currencies. Initially, CipherTrace was funded by the Department of Science and Technology of the US Department of Homeland Security and DARPA, now it is supported by leading Silicon Valley venture capitalists such as Galaxy Digital Mike Novogratz.

Leading exchanges, banks, investigators, regulators, and digital asset companies use CipherTrace to track transaction flows and comply with anti-money laundering regulatory requirements, which helps to build confidence in the cryptocurrency economy. The quarterly report on countering money laundering, CipherTrace, has become an authoritative industry data source.

After signing the contract, we have heard “Welcome to CipherTrace family” words, and EXMO team is very proud to be among the projects that influence the development of the entire industry.

EXMO starts using the CipherTrace product to assess the risk of wallets via which are making Deposits and wallets wich a making Withdrawals. After the appropriate assessment, wallets that have violated the AML rules would be closed.

In crypto we trust!

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You can find useful information about cryptocurrencies and exchange trading on EXMO’s YouTube channel and in EXMO Blog.

Thank you for choosing us,
EXMO team