What will make cryptocurrency transactions safer?

Publication date: 12 Sep 2021

In the first half of 2021, global cryptocurrency fraud reached $1.5 billion. This is 2-3 times more than in 2020. In 2021, the volume of fraud is expected to grow by 15%, according to Zecurion company experts.

The main reason for the growth of cryptocurrency fraud was the desire to make money from the growing segment at a time when interest rates are low and volatility in traditional financial markets is high.

Fraudsters use cryptocurrency to conduct illegal transactions and prohibited trading. The lack of mandatory verification allows cybercriminals to remain anonymous.

What will make cryptocurrency transactions safe?

In the traditional financial system, it is impossible to perform almost any transaction without identification, the introduction of such a system initiated by regulators should be the next step to legalize the cryptocurrency market, experts believe.

Many countries have already introduced a reference to cryptocurrencies and the need to comply with anti-money laundering laws into legislation, so regulators are starting to demand that crypto-exchanges introduce mandatory customer verification.

However, such actions are not beneficial to exchanges, as they lead to a decrease in the inflow of new customers. But platforms are forced in order to comply with the legislation of these countries.

The authorities have already signaled to the crypto industry that they will require stricter identification systems to track fraud. Platforms have a choice to either close down, comply with these conditions, or go completely into the dark web.