Do you know who’s trading on your cryptocurrency exchange? According to P.A.ID Strategies, a payments and identity security consulting firm, more than two-thirds of 25 prominent crypto exchanges in Europe and North America come up short when scrutinizing new customers, and that makes them vulnerable to illegal activities.
The report found 68 percent of the exchanges allow users to trade both crypto and fiat currencies with no formal identification and no know-your-customer, or KYC, checks, said MarketWatch on Wednesday. Coinbase, Gemini and Poloniex ranked the highest in compliance among the 25 exchanges that were analyzed.
“Cryptocurrency wallets and exchanges want to enjoy the same trust as the wider traditional financial services, but for this to happen they need to rise above the sometimes-dubious reputation of cryptocurrency’s past and be seen as ‘model citizens’ of the economy,” said John Devlin, principal analyst at P.A.ID Strategies, in a news release. Read more here.