Banks with crypto services require new Anti-Money Laundering capabilities


The new year began with the news that notable Web3 entrepreneur Kevin Rose fell victim to a phishing scam in which he lost over $1 million worth of nonfungible tokens (NFTs).

As mainstream financial institutions begin to provide services related to Web3, crypto and NFTs, they would be custodians of client assets. They must protect their clients from bad actors and identify whether client assets have been obtained through illicit activities.

Illustration of assets in a wallet categorized and labeled. Source: EllipticIllustration of Elliptic platform tracing a transaction back to the dark web. Source: EllipticAn illustration of how a cross-chain transaction between Polygon and Ethereum is identified as having its source with a crypto mixer — a sanctioned entity. Source: Elliptic


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