{"id":4572,"date":"2013-11-08T20:18:00","date_gmt":"2013-11-08T20:18:00","guid":{"rendered":"https:\/\/evssolutions.com\/bitcoin-innovation-not-exempt-from-compliance\/"},"modified":"2013-11-08T20:18:00","modified_gmt":"2013-11-08T20:18:00","slug":"bitcoin-innovation-not-exempt-from-compliance","status":"publish","type":"post","link":"https:\/\/evssolutions.com\/insights\/bitcoin-innovation-not-exempt-from-compliance\/","title":{"rendered":"Bitcoin Innovation Not Exempt From Compliance"},"content":{"rendered":"

The great thing
\nabout innovation is that it typically results in making everyday tasks easier
\nand less time consuming for individuals and businesses. For example, Ive always loathed going
\nshopping, because it is such a time consuming process. Whether Ive had to get one item or a
\nfull cart, I always get stuck in line waiting forever. Today going to the
\ngrocery has become a much more bearable experience, due to the innovation of
\nself-checkout. On the other hand,
\nseveral individuals skip the brick and mortar store completely and choose to
\npurchase everything online because of the Internet. Thank goodness for
\ninnovation! Can you imagine life
\nwithout your email, smart phone, car or social networks?<\/span><\/p>\n

<\/p>\n

Peer-to-peer
\nmoney transfer and payment processing is one of those areas that continues to
\nexperience transformation. Although
\nthere have been a number of different methods and new companies are always on
\nthe rise with the next big idea, there has always been the consistent fact that
\na bank or clearinghouse is involved in the process, until now. Bitcoin<\/a> has erupted onto the scene as the
\nfirst decentralized digital currency. Now individuals can send bitcoin payments
\ndirectly to their friends around the world via the web without the larger
\nprocessing imposed by banks. At
\nthe same time, this is very appealing to the under banked, because you dont
\nhave the same requirements of opening a checking account. Although the bitcoin
\ncurrency is very volatile, the launch of the first
\nbitcoin ATM in Canada<\/a> this past month and their recent surge in demand in
\nareas such as China, points to the fact that they are here to stay.<\/span><\/p>\n

A myth that bitcoin
\nproviders bought into is that they would not have the same KYC and AML <\/span>compliance regulations<\/span><\/a> that are faced by other financial
\ninstitutions. It is evident thats not the case. If someone is looking for
\nanonymity for laundering money, it would seem that bitcoin would become a
\nprimary target. Thailand has seen such a threat from the digital currency, that
\nit has been banned from their country all together. The New Yorks State department of financial
\nservices<\/a> has also voiced concerns over regulating Bitcoins. They were in
\nfact so concerned that they subpoenaed 22 major players from the bitcoin
\nindustry to get a better understanding of their current practices and to see if
\nregulation is indeed needed for virtual currency. <\/span><\/p>\n

For bitcoin
\nproviders, this should serve as a major red flag. Too many times, companies are
\nreactive instead of proactive in their <\/span>fraud prevention<\/span><\/a> and compliance strategies. The time for implementing the proper risk
\nmanagement tools is not when a fraudster has laundered money through your
\nplatform or once a company has been cracked down on by regulators for lax
\nprocesses. The time for implementing the proper identity verification and authentication
\ntools is now. <\/span><\/p>\n


\n<\/span><\/p>\n

<\/span><\/p>\n

[Contributed
\nby Shea Allen, Account Specialist]<\/span><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The great thing about innovation is that it typically results in making everyday tasks easier and less time consuming for individuals and businesses. For example, Ive always loathed going shopping, because it is such a time consuming process. Whether Ive<\/p>\n","protected":false},"author":40,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[40,34],"tags":[],"class_list":["post-4572","post","type-post","status-publish","format-standard","hentry","category-compliance","category-fraud-prevention"],"acf":[],"_links":{"self":[{"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/posts\/4572","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/comments?post=4572"}],"version-history":[{"count":0,"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/posts\/4572\/revisions"}],"wp:attachment":[{"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/media?parent=4572"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/categories?post=4572"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/evssolutions.com\/wp-json\/wp\/v2\/tags?post=4572"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}