As we all know, banks (and other financial institutions”) do everything possible (at least declare so) for the fight against Anti-Money-Laundering (AML) and fraud.
The Know Your Transaction (KYT) & Know Your Customer (KYC) is playing a crucial part in the AML process.
Know Your Customer (KYC) — identify the end owners who are implicated in trade relations.
Know Your Transactions (KYT) — spot potentially risky transactions and unusual behaviour.
DeepDive.Tech (DDT) has extensive experience when it comes to dealing with AML/KYC/KYT. To assist our community, we have decided to provide an additional level of visibility into transactions. Therefore we have developed an in-house, world-class KYT system, and we have integrated this system into one of our latest products. We also aimed to make this feature as simple as possible for everyday use.
It’s a common knowledge, that right now a lot of cryptocurrency exchanges already implemented AML (KYC and KYT) processes and procedures. Today, cryptocurrency exchanges block or require additional verification from about 20% of all users.
How to avoid becoming a victim of account blocking and not lose your assets?
Let’s start from the beginning: Why Do Exchanges Block Accounts?
Thanks to the new DeepDive’s Wallet functionality. Now we can do this in 3 easy steps.
Everything is straightforward — exchanges use specialized software that tracks “bad” coins. These are the coins that were seen in hacking exchanges used by hackers, or the previous owner participated in some illegal activity.
How could “Bad” coins get to me?
Usually, coins keep their entire history of movements. And if we just bought them, then there is a high probability that only two steps back, a previous owner paid with the same coins for weapons or hackers for hacking a computer. After that, they got on the exchange and immediately to us.
So, does it mean that based on this, an exchange can block my account?
Yes. As we know, today, all reputable cryptocurrency exchanges force all their user to identify themself and carefully check the origin of the funds. If the transaction is suspicious (for example, the cryptocurrency was received from the darknet) — the funds simply get frozen. The exchange may block your account and require documents that will confirm your purchase of these coins. As a rule, the probability of unlocking your account and getting your cryptocurrency back is very low.
How can we protect our cryptocurrency and be calm?
This few simple steps will help us find out if our coins are at risk:
Install Paytomat Wallet by Deep Dive Technology:
Connect a DLTI service that identifies potentially dangerous transactions and suspicious addresses on the blockchain. DLTI checks transactions and shows whether the transaction is risky or safe. The number of transactions for verification is not limited, and you can unsubscribe at any time.
Click on the “Check Transaction” button at the top of the “Transaction Details” screen.
We really hope that you won’t see the status of your transaction as “High Risk,” as it’s illustrated on the following screen:
Soon there will be an opportunity to check the funds before they are received and even block the sender. This, and many other, functions are in active development.