The Top 10  Most Difficult Countries for Identity Verification

The Top 10  Most Difficult Countries for Identity Verification

Download Report

A Brief Overview of the Cryptocurrency Landscape in the US and Canada [2022]

crypto cureency lanscape

The adoption of cryptocurrency throughout the world has ignited the launch of new markets and regulations. An increasing number of countries are bringing crypto firms within the scope of Anti-Money Laundering (AML) regulations, obliging them to incorporate Know Your Customer (KYC) and AML measures to effectively perform customer due diligence. 

The US plays a vital role in the global crypto adoption being the economic superpower. How the US regulates cryptocurrencies changes the way it is adopted in the rest of the world. Similarly, Canada is also a major player in the crypto sector with 40 crypto Exchange-Traded Funds (ETFs) and a serious stance toward crypto regulations.

How Crypto is Regulated in the US

The US has an organized method to streamline operations related to cryptocurrencies through rules and regulations like the Executive Order. The superpower has established numerous regulatory authorities to identify and mitigate the risks associated with crypto firms and exchanges. 

These include the Securities and Exchange Commission (SEC), the Commodities Futures and Trading Commission, as well as the Treasury Department, the State Department, and the Department of Homeland Security. These agencies are responsible for ensuring the protection of crypto customers and investors by tackling illicit financing. The crypto regulations enforced and overseen by these authorities are aimed at ensuring financial stability, opening doors for financial inclusion, and allowing risk-free innovation.

Financial Crimes Enforcement Network (FinCEN)

The Associate Director of FinCEN, Alessio Evangelista, stated at a crypto conference:

financial institutions that operate in the cryptocurrency space have the same obligations as all other financial institutions to ensure that their new offerings can leverage innovations while still protecting consumers, reducing cybercrime, combating illicit financial activity, and ensuring their platforms are not used to harm our national security interests.

Congress and the SEC

The 18th US Congress has seen a total of 50 bills and resolutions for the regulation of cryptocurrencies. These bills also include regulations for blockchain and Central Bank Digital Currencies (CBDCs). Another bill that has become prominent is the bill to regulate stablecoins after the downfall of terraUSD. Various rulings have also been issued to answer important questions regarding cryptocurrencies. For instance, the Securities and Exchange Commission (SEC) Chair stated that “Cryptocurrencies are replacements for sovereign currencies…[they] replace the yen, the dollar, the euro with bitcoin. That type of currency is not a security.”

us crypto stat

Regulation of Bitcoin

The US classifies Bitcoin exchanges under the scope of money service businesses (MSBs). The FinCEN has provided these exchanges with guidelines for individuals administering, exchanginng, or using virtual currencies. The guidelines state that a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency. MSBs, like financial institutions, are obliged to implement measures to ensure compliance with the Bank Secrecy Act (BSA) and AML regulations.

Canada’s Crypto Regulations

Canada was the first country to issue Anti-Money Laundering (AML) regulations for crypto service providers and also the first jurisdiction that registered an investment fund based solely on crypto. Canada brought cryptocurrencies under the scope of its existing securities law in 2017. The country is part of one of the biggest market for crypto and other related industries.

In Canada, all cryptocurrency dealers and exchanges fall under MSBs and are obliged to comply with the same regulations for customer due diligence, monitoring and reporting of suspicious activities. Virtual Asset Service Providers (VASPs) are required to register with the Financial Transactions and Reports Analysis Centre of Canada (FinTRAC) and implement KYC measures to verify the identities of their customers. They also need to report crypto transactions worth more than 10,000 Canadian dollars.

The Canadian Securities and Administrators has issued guidelines to help crypto issuers “avoid inaccurate or misleading disclosure and to provide the information necessary for investors to make informed investment decisions.” There is also a difference in classification for different type of crypto trading platforms. For instance, crypto-asset Trading Platforms (CTPs) deliver instant services to clients, and those that take custody of crypto assets. In cases where CTPs hold or control crypto assets, the assets are considered a security or derivative, and the CTP is considere a security dealer.

Additional Crypto Regulations in the US

In the US, the Office of the Comptroller of the Currency (OCC) permits US national banks to accept cryptocurrency deposits, exchange US dollars for stablecoins, and even use blockchain systems for payments. The Financial Action Task Force (FATF) has issued guidelines on how cryptocurrency exchanges should be regulated. The travel rule is a part of these guidelines, which obliges crypto exchanges to obtain, store, and send the beneficial ownership information to the relevant authorities. This is to ensure that suspicious activities are identified and reported within the given time, and the authorities can take quick actions to freeze or impose bans on transactions, entities, or businesses.

The FinCEN cleared the confusion around the travel rule and stated that the requirements are the same for crypto exchanges. In February this year, a joint venture by 18 US-based digital asset companies revealed the Travel Rule Universal Solution Technology (TRUST). The TRUST is aimed at helping crypto exchanges to comply with the travel rule while protecting the privacy of customers.

The US is on its way to developing a clear structure for the regulation of cryptocurrencies. Both individual and business investors will then have the confidence to invest in the sector.

What Shufti Offers

Preventing financial crimes like money laundering and terrorist financing requires cryptocurrency exchanges to incorporate adequate AML checks and KYC procedures. These practices have not only been endorsed by global regulatory authorities but have shown encouraging results in the real world as well. As cryptocurrency adoption is showing no signs of slowing down, firms must invest in the right AML solutions to streamline compliance and fraud detection processes. 

Shufti’s Anti-Money Laundering (AML) screening allows cryptocurrency firms to stay compliant with regulatory standards as well as preventing money laundering. Powered by thousands of AI algorithms, Shufti’s AML screening solution runs background checks on customers against 1700+ global watchlists in less than a second with 98.67% accuracy.

Want to learn more about our AML Screening solution?

Related Posts

Blog, Fraud Prevention, Online Marketplace

Why Digital KYC is Important for Insurance Fraud Prevention

KYC For Insurance Companies : Basically, a system that can carry out real-time identity verificat...

Why Digital KYC is Important for Insurance Fraud Prevention Explore More

Blog

Liveness Detection | An Extra Layer of Protection Against Spoofing and Fraud

The consumer demand for biometric and facial authentication technologies is rising, with the mark...

Liveness Detection | An Extra Layer of Protection Against Spoofing and Fraud Explore More

Blog, Identity & KYC

CRA Looking to Launch Digitally Secure Ways with Identity Verification Services

Canada Revenue Agency or CRA in collaboration with an identity verification service called Secure...

CRA Looking to Launch Digitally Secure Ways with Identity Verification Services Explore More

Blog

Anti-Money Laundering Screening | Securing Digital Economies from Financial Crimes

The increased reliance on digital banking and the advent of virtual currencies in today’s d...

Anti-Money Laundering Screening | Securing Digital Economies from Financial Crimes Explore More

Blog

AML Screening – Revealing the True Identities of Ultimate Beneficial Owners in Businesses

Hiding the Ultimate Beneficial Owners (UBOs) behind a business is never a good sign. However, som...

AML Screening – Revealing the True Identities of Ultimate Beneficial Owners in Businesses Explore More

Blog

Working from Home Spikes Demand for Digital Identity Verification

Due to the Coronavirus Pandemic, many businesses are grounded or are enforced to work from home. ...

Working from Home Spikes Demand for Digital Identity Verification Explore More

Blog

Key Takeaways From Shufti’s ID Fraud Report 2021

The year 2021 was all about determining and reducing the growing number of biometric identity fra...

Key Takeaways From Shufti’s ID Fraud Report 2021 Explore More

Blog

FATF’s Stance on Digitizing FIUs and Adopting A Risk-Based Approach for VAs

The Financial Action Task Force (FATF) is tirelessly working to guide Financial Intelligence Unit...

FATF’s Stance on Digitizing FIUs and Adopting A Risk-Based Approach for VAs Explore More

Blog

The Most Frequently Asked Questions About Perpetual KYC

Maintaining the accuracy of customer data presents a considerable challenge. Automating it has tr...

The Most Frequently Asked Questions About Perpetual KYC Explore More

Blog

The Complete Guide | Identifying Fake Documents

Many application processes have become easier and faster due to digital transformation. This is b...

The Complete Guide | Identifying Fake Documents Explore More

Blog

Top 5 Trends to Revamp the Online Gambling Industry in 2022

In recent times, the online gambling sector has demonstrated continuous growth along with technol...

Top 5 Trends to Revamp the Online Gambling Industry in 2022 Explore More

Blog

Enhancing Trust in eCommerce with AI-powered Identity Verification

eCommerce in today’s world involves utilizing evolving technologies to ensure convenience for cus...

Enhancing Trust in eCommerce with AI-powered Identity Verification Explore More

Blog

The Future Of the Financial Sector in the Gulf Region

Digital transformation, that has undoubtedly disrupted numerous industries worldwide, has reached...

The Future Of the Financial Sector in the Gulf Region Explore More

Blog

Fintech 2021: KYC/AML Bringing New Innovation to the Table

2020 was all about surviving the pandemic, but it has also kickstarted a new wave of innovation. ...

Fintech 2021: KYC/AML Bringing New Innovation to the Table Explore More

Blog

Securing FinTech Startups using Shufti’s AML/KYC Solution

Financial technology commonly known as FinTech is rapidly growing across the globe with a lot of ...

Securing FinTech Startups using Shufti’s AML/KYC Solution Explore More

Anti Money Laundering, Blog, Identity & KYC, Reg Tech

RegTech – FATF Guidance for Digital Identity Verification

Regulatory authorities have recognized the benefits of technology and its use for seamless regula...

RegTech – FATF Guidance for Digital Identity Verification Explore More

Blog

Ensuring Compliance and Preventing Losses Due to Fraud in the Banking Sector

Banks are thought to be the most important part of the financial system, playing a vital role in ...

Ensuring Compliance and Preventing Losses Due to Fraud in the Banking Sector Explore More

Blog, Identity & KYC

KYC Compliance – Strengthening Fraud Prevention Across the Globe

Know Your Customer (KYC)  The widespread availability of the internet has made our world more con...

KYC Compliance – Strengthening Fraud Prevention Across the Globe Explore More

Blog

Know Your Patient (KYP) – the next big thing in health care

Its high time the hospital industry must think beyond providing just giving medical assistance to...

Know Your Patient (KYP) – the next big thing in health care Explore More

Blog

Impact of Beneficial Ownership Transparency on Real Estate Crimes

The high price tags of real estate in the US open doors for corrupt politicians, kleptocrats, and...

Impact of Beneficial Ownership Transparency on Real Estate Crimes Explore More

Blog

Transaction Screening Vs Transaction Monitoring | What’s the Difference?

Transaction screening and transaction monitoring are critical in money laundering, counter-terror...

Transaction Screening Vs Transaction Monitoring | What’s the Difference? Explore More

Blog

Facial Recognition to Reshape the Retail Industry in 2020

The explosion of facial recognition technology in our smartphones – for instance in iPhone ...

Facial Recognition to Reshape the Retail Industry in 2020 Explore More

Blog, Identity & KYC

Identity Verification – Key to Eliminate BEC Fraud

Fraud prevention and cybersecurity are the major concerns of the companies in the digital era. No...

Identity Verification – Key to Eliminate BEC Fraud Explore More

Blog

Intelligent Character Recognition (ICR) Software – One step ahead of OCR

What is ICR? Intelligent Character Recognition (ICR) is an extended technology of Optical...

Intelligent Character Recognition (ICR) Software – One step ahead of OCR Explore More

Blog

How AI is Transforming the Banking Sector

Artificial Intelligence has extensive applications across several domains: from banking to health...

How AI is Transforming the Banking Sector Explore More

Blog

Unfolding Telecom Frauds through Effective KYC Compliance

The growing adoption of smartphones has naturally spurred sharing of personal data. From providin...

Unfolding Telecom Frauds through Effective KYC Compliance Explore More

Blog

A Statistical Analysis of Prevalent Crimes in the Global Financial Industry – [2022 Overview]

Over the past few years, the financial industry has witnessed significant technological changes, ...

A Statistical Analysis of Prevalent Crimes in the Global Financial Industry – [2022 Overview] Explore More

Blog

Simplify Payment Processes with Biometric Authentication

A developing trend that is altering how customers handle their money is the use of biometric auth...

Simplify Payment Processes with Biometric Authentication Explore More

Blog

A Brief Overview of the Cryptocurrency Landscape in the US and Canada [2022]

The adoption of cryptocurrency throughout the world has ignited the launch of new markets and reg...

A Brief Overview of the Cryptocurrency Landscape in the US and Canada [2022] Explore More

Blog

Shufti’s ID Fraud Report: Reviewing 2022 and a Preview of 2023

Twenty years back, “identity theft” was imagined as pictures of shady figures rifling through gar...

Shufti’s ID Fraud Report: Reviewing 2022 and a Preview of 2023 Explore More

Blog

CCPA: A Real Roller Coaster for Business Entities

One huge change in 2020 is the new data privacy law called the California Consumer Privacy Act or...

CCPA: A Real Roller Coaster for Business Entities Explore More

Blog

How ID Verification Helps in Fighting Digital Scams?

ID VERIFICATION: Digital scams are common phenomena and it affects all types of businesses in eve...

How ID Verification Helps in Fighting Digital Scams? Explore More

Blog

Card-Not-Present (CNP) Fraud – How to Prevent False Chargebacks?

The eCommerce industry continues to grow rapidly, so are fraudulent activities. According to Stat...

Card-Not-Present (CNP) Fraud – How to Prevent False Chargebacks? Explore More

Blog, Fraud Prevention

Identity Theft – One Fraud Multiple Facets

Identity theft is a global crime. All types of identities, including the financial, medical and b...

Identity Theft – One Fraud Multiple Facets Explore More

Blog

UK Elections: Photo ID Law Change Raising Concerns for Voters

Law changes bring several hassles for the public and government authorities. The recent photo ID ...

UK Elections: Photo ID Law Change Raising Concerns for Voters Explore More

Blog

A Statistical Analysis of Prevalent Crimes in the Global Financial Industry – [2022 Overview]

Over the past few years, the financial industry has witnessed significant technological changes, ...

A Statistical Analysis of Prevalent Crimes in the Global Financial Industry – [2022 Overview] Explore More

Blog

Securing Digital Payments and Mitigating Financial Crimes Through AML Screening Solutions

The promise of payments technologies is being realized. Consumers are executing frictionless paym...

Securing Digital Payments and Mitigating Financial Crimes Through AML Screening Solutions Explore More

Blog

5 Benefits of Optical Character Recognition in the Classroom

Optical Character Recognition (OCR) goes beyond just processing documents and boosting businesses...

5 Benefits of Optical Character Recognition in the Classroom Explore More

Blog

Cross Border Digital Payments – Regulatory Regime and the Global Context

The world is moving towards smarter payments with technology trends picking up the pace in 2021. ...

Cross Border Digital Payments – Regulatory Regime and the Global Context Explore More

Blog

AML Screening | Fighting the War Against Terrorist Financing & Money Laundering

Money laundering and terrorist financing have become a global concern. In the US alone, approxima...

AML Screening | Fighting the War Against Terrorist Financing & Money Laundering Explore More

Blog

2 Factor Authentication: Businesses’ Secret Weapon Against Cybercriminals

Passwords continue to be a low-hanging fruit for cybercriminals.  Approximately 15 million record...

2 Factor Authentication: Businesses’ Secret Weapon Against Cybercriminals Explore More

Blog

5 Key Questions about Facial Recognition Answered by Experts

Technology has definitely made life convenient but comes with a gazillion concerns from anyone wh...

5 Key Questions about Facial Recognition Answered by Experts Explore More

Blog

May 2023 Recap: Major Security Breaches and Penalties

May 2023 witnessed several security breaches wreaking havoc on the digital landscape. High-profil...

May 2023 Recap: Major Security Breaches and Penalties Explore More

Blog

Warning Signs of ICO Scams and the Role of Identity Verification Service

If you have heard of Bitcoins and cryptocurrencies then you must have heard of ICOs or Initial Co...

Warning Signs of ICO Scams and the Role of Identity Verification Service Explore More

Blog

Top 5 Ways Minors Use to Dodge Age Verification Checks

Protecting minors from the perils of the digital world is nearly impossible for businesses withou...

Top 5 Ways Minors Use to Dodge Age Verification Checks Explore More

Blog

The Trade-off Between Fraud Losses and Compliance Costs in the Banking Sector

The modern era’s demand for digital-first services in sectors ranging from e-commerce, online dat...

The Trade-off Between Fraud Losses and Compliance Costs in the Banking Sector Explore More

Blog

Rising Social Media Scams in 2020 Calling for Digital Identity Verification

Social media was a simple place for interaction a few years back. People valued it for its securi...

Rising Social Media Scams in 2020 Calling for Digital Identity Verification Explore More

Blog, Identity & KYC

Cybercrimes Rise 5 times in 4 years and Continue to Soar!

 A rapid stride in the tech world over the years has increased cybercrimes immensely. According t...

Cybercrimes Rise 5 times in 4 years and Continue to Soar! Explore More

Blog, Online Marketplace

Secure Online Gambling through Identity and Age Verification

Gambling is a very profitable business for big players and owners alike. According to research, t...

Secure Online Gambling through Identity and Age Verification Explore More

Blog

Is Your Company Safe? The Importance of Document Verification to Strengthen KYC Checks

Businesses across the globe are still vulnerable to threats like money laundering, terrorist fina...

Is Your Company Safe? The Importance of Document Verification to Strengthen KYC Checks Explore More

Blog

FATF October 2019 Plenary – Here is What You Need to Know

Financial Action Task Force (FATF) President Xiangmin Liu, chaired the first meeting from 16-18 O...

FATF October 2019 Plenary – Here is What You Need to Know Explore More

Blog

Video KYC in 2024 | A Step Towards Digital Evolution

The striking surge in theft and fraud through digitisation is a growing concern for many business...

Video KYC in 2024 | A Step Towards Digital Evolution Explore More

Blog, Financial Crime / AML, Identity & KYC, Reg Tech

Significance of AML Compliance in Money Services Business

The financial sector landscape is evolving with the advent of the FinTech industry. Many revoluti...

Significance of AML Compliance in Money Services Business Explore More

Blog

Combatting Identity Theft with KYC Verification – A Risk-Based Approach in Online Shopping

The proliferation of online stores has radically transformed how people shop and greatly affected...

Combatting Identity Theft with KYC Verification – A Risk-Based Approach in Online Shopping Explore More

Blog

What to expect from Booming Identity Verification Market in 2020?

Technologies hatched by fourth industrial revolution such as the Internet of Things (IoT), roboti...

What to expect from Booming Identity Verification Market in 2020? Explore More

Blog, Identity & KYC

Common Online Scams You Need to Know About

The explosion of the internet and the world moving towards the fourth industrial revolution have ...

Common Online Scams You Need to Know About Explore More

Blog

Identity Verification and Prevailing Crimes – How Shufti’s Proof of Verification Services Can Help

With growing digitization, emerging technologies, and increased use of online transactions, a hug...

Identity Verification and Prevailing Crimes – How Shufti’s Proof of Verification Services Can Help Explore More

Blog

5 Key Regulatory Updates for the Banking Sector in 2021

The pandemic disrupted operations in the banking sector and the criminal activities significantly...

5 Key Regulatory Updates for the Banking Sector in 2021 Explore More

Blog

Ensuring KYC/AML Compliance In Cryptocurrency Firms – The Role of Shufti

With emerging technologies in the financial industry, cryptocurrency is picking up the pace, and ...

Ensuring KYC/AML Compliance In Cryptocurrency Firms – The Role of Shufti Explore More

Blog

The Evolution of AML Compliance from Checkbox to Risk-based Approach

Financial institutions are exposed to several money laundering threats, as criminals today are we...

The Evolution of AML Compliance from Checkbox to Risk-based Approach Explore More

Blog

High-Risk Customers in Banking and How EDD Can Help Identify Them

In this age of digitisation, banks and other financial institutions face a high risk of money lau...

High-Risk Customers in Banking and How EDD Can Help Identify Them Explore More

Blog

40 Surprising Facts and Statistics About Money Laundering [2021 Update]

Combatting money laundering is one of the top-tier challenges when it comes to the regulatory reg...

40 Surprising Facts and Statistics About Money Laundering [2021 Update] Explore More

Blog

Elevating Payment Security: The Crucial Role of Biometric Authentication

There has been a considerable rise in digital payment methods in recent years. People now prefer ...

Elevating Payment Security: The Crucial Role of Biometric Authentication Explore More

Biometric Technology, Blog

How eIDAS compliance is easier with Biometric Consent from Shufti pro?

Biometric consent authentication is a brand new verification solution from Shufti, using an i...

How eIDAS compliance is easier with Biometric Consent from Shufti pro? Explore More

Blog

AML Screening – Identifying and Eliminating the Risks of Money Laundering in Businesses

Eliminating the risks of financial crime in businesses has never been easy and has been identifie...

AML Screening – Identifying and Eliminating the Risks of Money Laundering in Businesses Explore More

Blog

The Rising Concern of Financial Crimes in the Metaverse – AML Screening as a Solution

The digital world is evolving at a greater pace than ever before. The Metaverse is considered a d...

The Rising Concern of Financial Crimes in the Metaverse – AML Screening as a Solution Explore More

Blog

Implementing Robust Anti-Money Laundering Checks for the Insurance Sector

Insurance companies play a decisive role in the considerable growth of an economy. It turns accum...

Implementing Robust Anti-Money Laundering Checks for the Insurance Sector Explore More

Blog

Cybersecurity vs User Experience – Knowing the Art of Balancing

Several years of debate between cybersecurity and customer experience has driven most people craz...

Cybersecurity vs User Experience – Knowing the Art of Balancing Explore More

Blog

Top 5 Ways to Improve Transaction Monitoring in Fintech

Fintech is a fast-growing sector that combines finance and technology to assist businesses and cu...

Top 5 Ways to Improve Transaction Monitoring in Fintech Explore More

Anti Money Laundering, Blog

How is Libra’s Launch Changing the Cryptocurrency Landscape?

Libra will have to go the extra mile to prove itself worthy of global acclaim that it aims to ach...

How is Libra’s Launch Changing the Cryptocurrency Landscape? Explore More

Blog

Establishing a KYC/AML Compliance Regime for the FinTech Sector

Today, more than 60% of the financial institutions in the market consider Fintech startups to be ...

Establishing a KYC/AML Compliance Regime for the FinTech Sector Explore More

Blog, Identity & KYC

Employees’ Digital Identity Verification for Remote Hiring

With the age of technological advancement, the world is becoming a heavily connected global villa...

Employees’ Digital Identity Verification for Remote Hiring Explore More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started