Any natural or legal person who, as a business, conducts activities or operations with virtual assets, for example, cryptocurrencies or crypto-tokens, for or on behalf of another natural or legal person.
Published in Chapter:
A Survey of KYC/AML for Cryptocurrencies Transactions
Suzana M. B. M. Moreno (Brazilian Development Bank, Brazil), Jean-Marc Seigneur (University of Geneva, Switzerland), and Gueorgui Gotzev (Kohler Gotzev, S.àr.l. - Avocats à la Cour, Luxembourg)
Copyright: © 2021
|Pages: 22
DOI: 10.4018/978-1-7998-5728-0.ch002
Abstract
KYC (know your customer) and AML (anti-money laundering) practices have been designed and implemented in traditional financial transactions for some years now. However, it has been complicated to find a balance between business efficiency, innovations, financial inclusion, and compliance, both in the specification of what should be done and in the implementation of a risk-based approach that satisfies the required specification during real business operation. This chapter presents a survey of traditional practices to KYC/AML, highlighting a subset of existing challenges in these practices, taking into consideration the innovation of cryptocurrencies transactions and related innovations, such as digital identity, and the financial inclusion of unbanked people without identity papers. The authors finish this chapter by discussing existing solutions to these challenges both by adopting new KYC/AML practices and by using innovative technological solutions.