Investigate The Source of The Sender’s Funds and Retrieve Crypto Transfers Sent in Error
The beauty of cryptography lies in endless opportunities, and that’s attractive to many. We can see the shifts in capital flows and track interest shifting to Decentralized Finance (DeFi). Although it is risky due to its high volatility, being such a young market like DeFi that’s also unregulated carries some other, more significant threats.
DeFi becomes a huge playground for money laundering (ML) or terrorist financing (TF) when there are no boundaries. This is the real danger. Another fuel to the flame is the absence of KYC or AML procedures. Even the statistics demonstrate that money laundering via DeFi is increasing – about $34 million of DeFi transactions in 2020 were conducted by criminal actors.
Companies like Ciphertrace and PureFi are available to crypto users. Companies like Ciphertrace, Chanalysis, PureFi and Hacken are all working together to reduce the distance between mass adoption of DeFi. PureFi is a Decentralized Protocol that offers compliance tools and anonymity to users. Kirobo is a DeFi Technology company that allows users to access crypto transfers. This collaboration combines the best from both companies while fighting the illicit funding in the DeFi sector. How? Let’s see.
Safe transfers will allow users to verify the identity of their counterparts and make a decision about whether they should interact with particular wallets. A user can also see an AML score for an inbound transaction, and then decide whether or not to accept it. In case of a high-risk score of a sender, a receiver can easily “undo” the transaction protecting its wallet from the dirty funds. The same applies to Safe P2P Swaps – users will be able to see the AML score of each wallet that engages in a swap interaction.
Another exciting part of their collaboration is the integration of PureFi that will take place within Kirobo’s Liquid Vault. The planned feature allows users to inspect the wallet they used when creating their Vaults and find out whether it is sufficiently AML-risky. Beyond that, Kirobo users will be able to check the AML score of a DeFi pool or smart contract before interacting with it, thanks to PureFi’s solution. Since the Vault is also being developed and updated constantly, other features such as PureFi’s AML checks and potentially KYC elements will be integrated in the future.
We will surely be interested to hear more about these initiatives.