Each exchange must create a database of traders to combat the illegal use of digital currencies. That is stated in a statement by the Financial Action Task Force on Money Laundering (FATF).
This organization has repeatedly pointed out the need for detailed identification of cryptocurrency holders. That, according to the FATF, should be done by exchanges.
Last Monday, the organization listed signs of suspicious activity by users of trading floors.
They will be able to use such criteria to monitor transactions and identify suspicious transactions. That will help in the fight against the illegal use of digital currencies, FATF analysts say.
The main evaluation criterion is the user's transactional activity, information about which is stored in the exchange database.
For example, an investor who previously received almost no funds has now started accepting large amounts of cryptocurrency. At this point, the administration of the trading platform should strengthen control over such a user, since most likely, the exchange is dealing with fraud or money laundering.
Another alarming sign is the user's criminal record or his activity on forums and other Internet resources related to shady business.
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Another dangerous signal for the administration should be the information that the exchange user prefers to use only confidential cryptocurrencies (Monero or ZCash), the FATF report says.