Sharing data is the limits of compliance with the following encryption star-news.press/wp

Opinion: Mike Halley, CEO of CIFAS

While the encryption industry is a revolution in the world of financing, there is a reality under the surface. Strike the record levels, and according to what was reported, fraud in the encrypted currency was calculated 9.9 billion dollars In 2024 – with 2025 expectations for reading until reading.

Whether it is in the form of “old wine in new bottles”-such as Ponzi and POMP-AND DOMP, or new coding styles such as addresses with addresses-the global fraud of fraud strikes the industry strongly and undermines consumer confidence.

Criminals are increasingly controlling this sector to wash the resulting fraud revenue in the traditional financing sector (Trafi). This creates compliance challenges for companies to keep pace with the rules of anti -money laundering development (AML). After all, approximately 90 % of the UK encryption requests fail due to poor fraud and fraud.

TV abuse

This abuse of the encryption sector is not noticed by an industry that works hard to clean its image in the eyes of the global organizers, many of whom began to search for the organization of the sector behind the AML perimeter. The efforts made by individual companies – such as tools for reporting the fraud in industry and disruptions – will keep them although they may be, will have a limited effect on isolation.

The industry needs a bolder approach to exchange financial crime data.

The participation of data between the public and private sectors in the processing sector of fraud has become the standard in the Trafi sector. Whether by sharing compulsory data to combat Scam between financial services and telecom companies in Singapore or the industrial -led volunteer plans in Australia and the United Kingdom, data sharing worldwide is accepted as one of the main defenses against global fraud.

Related to: Blockchain compliance tools can reduce TDFI costs: co -founder of Chainlink

We can only put a drain in this global crime wave by joining the points along the fraud value chain. Since fraud adapts to the new financial scene at the international level, what is missing in this series is the digital asset community. Bring society to the efforts to share current data will not only help build a strong environmental system, but will benefit the industry itself as well.

Work theory

There are three things that the industry should do.

First, the current limited use of encryption cannot be a means of prevailing payment even the most committed encryption criminal in isolation. Currencies on corpses and abandonment between cryptocurrencies and currencies are the main points in the fight against encryption. With no from either side to see the full picture, the failure to share data obstacles efforts.

Second, using encryption in the fraudulent washing chain creates the AML challenge. With the organizers breaking the new stock exchanges and rules that begin to sting, the industry needs to build defenses against fraud revenue. This cannot be done without the basic data flows needed to discover individuals and prevent them from entering their ecosystem, which must be issued from the value chain.

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Third, while the will to address fraud within the digital asset community grows, compliance as a profession within the sector is the emerging discipline. The industry will benefit from difficult data and the experience of fraud prevention specialists in other sectors, which are the types of emerging fraud operations “as usual”.

While the arguments supporting the participation of industry data via the Internet to prevent fraud associated with encryption, what should happen to implement the theory?

Speeding cooperation

The UK provides a potential policy environment for the first conquest in industry in sharing data across sectors.

From a legal perspective, the UK privacy organizer, the Information Commissioner Office recently I mentioned Unambiguously that “data protection is not an excuse when processing fraud and fraud.” This is particularly closely related to modern crimes, one of which witnessed fraudulents stealing $ 1.2 million by demonstrating as law enforcement and encryption wallets to deceive victims to detect personal information.

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In addition to the modern legislative changes in the data privacy system in the form of data (use and access) Representation 2025 – It proves to be crime prevention as a “recognized legal interest” – the legal argument for participation cannot be more clear.

After that, the organizational horizon for regulating digital assets in the UK provides the islands and sticks to prevent fraud and data exchange. The announcement of the UK consultant to future regulations indicates that the digital asset industry will be linked under the consumer protection rules themselves as the Traffi sector. It is difficult to imagine the protection of consumers in the UK against fraud without the data exchange element through the industry.

The carrot also exists with the Financial Conduct Authority – and the digital asset regulation in the declared future – data sharing shows a major tool in fighting revenue.

Finally, the United Kingdom has a rich environmental system and a participant to exchange data in financial crime, with strong cooperation between the public and private sectors, within the industry, including through the joint work of money laundering intelligence. These initiatives have already opened the digital asset industry, and with some government and organizational support, they can be accelerated.

The encryption community and digital assets are well known the reputation and organizational risks posed by the state of fraudulent emergency. But recognition alone is not enough, and efforts should not remain fun. Sharing transmission data through the industry is a major factor in effective prevention from fraud all over the world. Looking at the favorable environment in the UK, it is uniquely placed to restrict example.

Opinion: Mike Haley, CEO of CIFAS.

This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.