Co-chair of Digital Asset Task Force says illicit transactions in the crypto space remain negligible as criminals can be easily tracked and punished
Michael Gromeck, Co-Chair of the Digital Asset Task Force Committee of the Global Coalition to Fight Financial Crime, believe that Cryptocurrencies are not a haven for illegal actors as transactions can be traced.
Gromek made the statement while speaking in an interview with Kitco News at the Future Blockchain Summit in Dubai. He said:
Transacting on the blockchain and feeling that you will run away and not be punished is not true. Most suspects can be easily tracked down… It is not smart to transact with pseudo-anonymous currencies on the blockchain.
Citing reports that indicate that illicit activities on the blockchain are only roughly 0.15% of all transactions, Gromek revealed that the Digital Assets Task Force can sniff out criminal actors by working with Know Your Customer (KYC) data of exchanges and implementing anti-money laundering (AML) regulations.
Financial crime advisor said there are no so-called “privacy coins” either Monero (XMR)One that uses complex codes to hide wallet addresses is exempt from being traceable by law enforcement bodies.
Gromek’s advice for investors
According to Gromek, while illicit actors in the crypto space can be brought to justice, investors still have to be vigilant to not fall victim to scammers and fraud. One way to do this is to assess risks before investing in any project and work with only trading venues that are compliant with regulations in their jurisdiction.
His revelation comes as a number of privacy tokens have recently moved away from regulators. back in september, U.Today reported That crypto exchange Huobi Global removed several privacy coins including DASH, XMR, ZEC, ZEN, and a few others.
Similarly, the popular Ethereum-based privacy tool Tornado Cash was banned by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) for facilitating money-laundering transactions, especially for hackers linked to North Korea.
