I own Bitcoin and am long Bitcoin – Brad GarlinghouseJune 28, 2019
Brad Garlinghouse, spoke at the Fortune Brainstorm Finance 2019 Conference and stated, “I own bitcoin and am long bitcoin.” He further added, “I don’t think that there will be one crypto to rule them all.”
Previously, Garlinghouse stated that for small-to-medium enterprises, “Ripple provides a smoother, more reliable service than the legacy system, and makes an impact on their bottom line. For SMEs in particular, that impact is huge.”
Ripple has recently signed up a deal with Coinfirm, a regulatory technology startup. Coinfirm will provide anti-money laundering information to Ripple, which will be based on whether the cryptocurrency transaction has been processed using mixers.
Mixers are methods used to launder cryptocurrency where there is a private exchange of funds from multiple counterparties. The services will also provide information about clustering. Clustering is a process where small amounts of money are sent through different addresses to hide the size of the more significant transaction. This mainly happens when the funds come from a known theft or hack.
The information provided will not provide the exact identities; however, it will help identify if the proposed currency exchange is one that permits anonymous exchanges or not. It will also provide information on whether the entity is registered in a country, which is considered to be high risk. The report will also grade the address as being low, medium, or high risk. It provides a score ranging from 0 top 99, with 99 being the highest in the risk line for money laundering.
FATF – Financial Action Task Force, the international rule maker, has provided guidance, which required that cryptocurrency exchanges share information. Per the guidance, the information should contain information about counterparties like in any traditional banking system. This is one of the latest development, which provides proof of the fact of how the developers of cryptocurrency technology are continuing to come up with new ways to protect the identities of the developers.
Kuskowski, former head of global AML for the Royal Bank of Scotland, stated, “We argue with FATF that this is completely sufficient, and effectively it is sufficient.” He further added, “We don’t believe you can run an exchange with coverage for only one currency or two major currencies, because then your AML solution is invalid, because you can launder money through others.”
There are 37 member countries in the FATF, and they have one year to either comply with the requirements or face the consequences. The membership in FATF is voluntary. Every nation will be able to roll out its needs as it sees fit.