Opinion: Mike Haley, CIFAS CEO
While the cryptographic industry revolutionizes the world of finance, there is a basic reality under the surface. Achieving record levels, cryptocurrency fraud reportedly included $ 9.9 billion In 2024 – with a forecast 2025 in the case of gloomy reading.
Regardless of whether in the form of frauds of “old wine in new bottles”-such as ponzi and pumps and pumps diagrams and fresh typologies of fraud specific to crypto-condenses, such as poisoning addresses-a lobal fraud epidemic strikes the industry strongly and undermines consumer trust.
Criminals are increasingly abusing the washing sector for fraud generated in the established finance sector (Tradfi). This creates challenges related to regulations for companies that keep up with the evolving principles of counteracting money laundering (AML). After all, almost 90% of applications for cryptocurrency registration in the UK fails due to penniless AML control and fraud.
Abuse of the cryptowal sector
This abuse of the cryptographic sector is not unnoticed by a difficult -working industry to tidy its image in the eyes of global regulatory authorities, many of which are starting to apply for the regulation of the sector outside the AML circuit. The efforts of individual companies – such as fraging tools of fraud and interference operations – although they may be praiseable, will have a restricted impact in insulation.
The industry needs a much bolder approach to sharing anti -financial data.
Limpid public-private sharing of data to solve fraud quickly becomes the norm in the Tradfi sector. Regardless of whether through the mandatory sharing of anti-scam data between financial and telecommunications services in Singapore, or in the industry, Australia and Great Britain, data sharing is accepted around the world as one of the key defense against global fraud.
Related: Blockchain compliance tools can reduce Tradfi costs: chain co -founder
We can only put in this global criminal wave, combining dots along the fraud values chain. When the fraud adapts to the fresh financial landscape on the international arena, there is a lack of digital asset community. The introduction of the community into existing data dividing will not only lend a hand build a forceful ecosystem, but also bring benefits to the industry itself.
Theory to act
There are three things that industry should do.
First of all, the current restricted apply of cryptocurrencies as the main payment current means that even the most involved cryptographic criminal cannot exist in insulation. Conditions on the outskirts between cryptographic currencies and fiduations are key intervention points in the fight against crypto fraud. Without any side, he does not see the whole image, the lack of data sharing makes efforts arduous.
Secondly, the apply of cryptocurrencies in the fraud washing chain creates the challenge of AML. Since the regulatory authorities are distributing on exchange and fresh rules that begin to bite, the industry must build defense against asking for fraud. This cannot do this without the necessary data flows needed to detect and block people before entering their ecosystem, data that must be obtained from a further chain of values.
https://www.youtube.com/watch?v=vlicokjsip8
Thirdly, while the will to deal with fraud in the digital asset community is growing, compatibility as a profession in the sector is born of discipline. The industry would benefit from difficult data and experience of recognized specialists in preventing fraud in other sectors for which the types of fraud appearing are “business as usual”.
Although the arguments for sharing data between industries to prevent cryptocurrency frauds are clear, what must happen to implement the theory?
Acceleration of cooperation
The United Kingdom offers a potentially hospitable political environment for the first expeditions in the field of data exchange.
From a legal point of view, the British privacy regulator, Information Commissioner’s office, recently It was found Unequivocally that “data protection is not an excuse when the fight against fraud and fraud.” This is particularly significant for recent crimes, one of which caused the fraudsters to steal $ 1.2 million, pretending to be law enforcement agencies and cryptographic portfolio to deceive victims in disclosing personal data.
https://www.youtube.com/watch?v=T06MVWZ6NGM
In combination with recent legislative changes in the data privacy system in the form of data (apply and access) Work 2025 – which establishes the prevention of crime as a “recognized justified interest” – a legal argument for sharing cannot be brighter.
Then the regulatory horizon of the regulation of digital assets in Great Britain provides carrots and sticks to prevent fraud and sharing data. The announcement of the British Chancellor regarding future regulations definitely suggests that the digital asset industry will be bound by the same principles of consumer protection as the Tradfi sector. It is difficult to imagine consumer protection in Great Britain against fraud without an element of data division between the industry.
Carrot is also there with Financial Conduct Authority – and the future regulator of digital assets – stating that sharing data is a key tool in the fight against fraud income.
Finally, Great Britain has a affluent and established ecosystem for the division of financial crime data, with solid public-private, inside industry and comprehensive cooperation, including through the common task force for money laundering intelligence. Opening these initiatives for the digital asset industry has already begun, and with some government and regulatory pads they can be accelerated.
The cryptographic and digital community of resources only knows the reputation and regulatory risk, which is frauds. But recognition is not enough, and the efforts cannot remain muted. Sharing data between industries is a key enabling of effective prevention of fraud around the world. Considering the favorable environment in Great Britain, it is extremely placed according to the example.
Opinion: Mike Haley, CIFAS CEO.
This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.
