Bitcoin Exchanges to Be Monitored - Suggested by Patent Filing
FICO has filed a new invention patent. The government, FICO and others can collect data relating to finance from the Bitcoin exchanges with the new tool- the invention. The invention will help in supporting KYC and AML regulations. This patent is known as "Advanced system for prevention and detection of money laundering".
Why the Tool of Invention?
The invention tool is designed to stop all fraudulent activities as suggested by the patent filing. To get a hold of criminals and others, the government offices are keen on procuring data from the exchanges. Centralization of the information is their main goal.
According to patent filing; questions on such topics and from public regulators and records can be included by KYC onboarding and customer updates. On time data about the sources of illicit Bitcoins will be difficult to attain, but is it vital to procure and centralize data on administrators and legal exchanges. Complying entities related to Bitcoin with regulations like bank secrecy act and money service businesses (MSBs) is of high importance.
Collection of Information Using Different Platforms
While collecting data from the cloud, it is important to stick to the regulations and that's the main purpose of the products. Many servers will help in attaining scores of AML threat, as suggested by the patent filing; therefore, allowing various agencies to note information from two or more institutions.
Patent filing also mentioned, information regarding SAR and risk factors from numerous institutions that are related to AML association can be tracked down by the predictive model. If they want to have a broader view of the risk data’s, this predictive model can help in singling out transactions and information about the customers.
Attempts for Data Procurement
A new approach for collecting information directly from Bitcoin has been attempted by IRS in spite of this new data collection tool- the invention. IRS and coinbase have been going through a legal battle for some time which is still continuing. Centralization and analysis of Bitcoin data have been stressed on by numerous sources. Even though IRS demands it, Coinbase did not fall for the bait. They are still behind acquiring various information about the financial and security aspects of data's from the users.
The main issue concerning the government is fraud, but the tax evaders seem to be under the radar and operating without anyone noticing them. The battle between information centralization and data decentralization is worth a watch in the future.
This tool may or may not be effective for catching fraudulent activities. It will remain a mystery until this tool is effectively and efficiently utilized by the government and other institutions.