A United Nations (UN) official said that cryptocurrencies are making “international efforts to combat terrorist financing, money laundering and cyber crimes such as child abuse” exceptionally difficult.
Neil Walsh, director of the cybersecurity and anti-money laundering branch of the United Nations Department of Drugs and Crimes, speaking with Linda Mottram of the Autralian Information Dissemination Corporation, commented that the attributes of Anonymity and pseudoanonymity of cryptocurrencies provide a “new layer of secrecy that favors criminals.”
Specifically, Walsh noted concerns about the role that cryptocurrencies play in the clandestine child abuse industry.
“In the past, when we looked at some of the large high-risk areas, such as the case of child abuse online, this had to be paid, and now with the use of cryptocurrencies it is extremely difficult for researchers follow up and try to manage that risk to reduce it. ”Walsh said.
Walsh suggested that this trade is now governed by the use of cryptocurrencies, adding that “child molesters succeed when they can create secrecy.” Walsh added later:
When you add a layer that is encrypted, that is anonymous or pseudo-anonymous, then it becomes very difficult for researchers to face this challenge and, in addition, this also makes it much easier for the types bad do what they want, and this creates risks, especially for our children.
Walsh said that the efforts should aim at those exchange houses where illicit funds could be laundered . He suggested that adding security protocols would not interfere with the common user, as well as “there is really no great risk in declaring who you are and that you have an interest in moving values.”
FATF and UN efforts against child abuse
Wash highlighted the efforts made by the Financial Action Task Force (FATF) as a possible way to track who could be moving value using cryptocurrencies.
In June, FATF, the intergovernmental organization dedicated to combating money laundering and terrorist financing, finalized its recommendations for the regulation of cryptocurrencies for 37 member countries, including a rule in which “digital asset service providers” (VASPs), ie cryptocurrency exchange houses, execute the so-called “travel law.”
Under this stipulation, it will be a requirement for exchange and portfolio service providers to have know-your-client (KYC) information not only for their clients, but also for the users of the portfolios to which they will be sent funds.
“We're still waiting to see how it works,” said Walsh. But he added that the United Nations has brought together legislators and experts to work on the best policies to regulate the ecosystem.
“We have brought together all these legislators, lawyers and cryptocurrency experts to try to see how the policy could be in the ecosystem, because we see some of these high-risk crimes in which we see children involved, and I speak of very, very small babies, six months of age or younger, who are on streaming websites where it pays to watch the sexual abuse of children live, ”said Walsh, adding:
That is being paid in cryptocurrencies. We need to have some kind of option. We need to know how we can try to address that threat and reduce the risk to children and reduce opportunities for criminals to be involved. And this is going to need many different brains. This will take technology experts, legislators, philosophers, all nine fields.
Translated version of the article by Daniel Kuhn, published on CoinDesk
Author: CryptoNews – Source Post: http://ceesty.com/w3427g
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