This article was published on KYC360.com on March 12, 2018.
With digital currencies on the rise, cryptocurrency proponents are pushing for more open financial systems to, in part, serve the under-banked and reduce transaction costs. In this article, A&M’s Rachel Crabtree and Michael Carter stress that cryptocurrency firms who are proactive in establishing strong compliance controls are likely to avoid future pain of regulatory scrutiny.
By implementing effective and efficient compliance programs, crypto firms will help to stabilize and legitimize cryptocurrency’s purchasing power and may lead more banks to establish relationships with crypto exchanges. Further, the use of blockchain technology as the standard reporting platform between banks and exchanges and the application of blockchain to compliance functions will help alleviate common misperceptions of the use of crypto for nefarious purposes.