Research shows that the majority of cryptocurrency exchanges are not equipped to handle basic KYC. Nations only have seven months left to pass laws and virtual asset service providers to comply with guidelines, yet they are inadequately prepared to comply with the new funds Travel Rule in the Financial Action Task Force (FATF) guidance. Researchers have determined that, after two years of high-profile exchange hacks and exit scams, 2019 has seen a significant reduction in crypto crimes. However, despite experiencing the lowest quarterly cryptocurrency thefts and scams in over two years, 2019 as a whole saw crypto crimes costing $4.4 billion.
Although there is no data to explain the Q3 drop, it is possible that government regulation of the cyber industry is discouraging crypto crimes and having a positive impact within the sector. Previously, researchers determined that the shift from theft to exit scams and other methods of fraud indicated that crypto exchanges had begun to harden IT infrastructures. Sophisticated terrorist and criminal organizations are responsible for the global tightening of cryptocurrency exchange practices, which ultimately led to threat actors searching for new ways to raise funds.
Read More: 2019 experienced massive spate of crypto crimes, $4.4 billion to date
