The no-questions-asked regime used by money launderers to freely move cryptocurrencies to ‘private wallets’ is about to end.
India’s crypto exchanges are working on a rule under which platforms will allow a transfer only after the sender discloses the identity of the persons behind a private wallet which receives the cryptos.
Crypto exchanges in India are planning to introduce a rule that will only allow a transfer of cryptocurrencies after the sender discloses the identity of the persons behind the private wallet receiving the cryptos. While there is a standard procedure to get to know the identity of buyers and sellers as part of the know-your-customer process, there is no way to know the identity of a private wallet owner. Transfers to private or unknown wallets have been a problem in the crypto ecosystem, leading to the new proposal to track transfers to private wallets and enhance security.
