Miners are the foundation of the majority of the public Blockchains. They play an essential role in the network and we can not neglect how powerful they are.
Why is it important for Scorechain to collaborate with Know-Your-Hashrate (KYH)?
At Scorechain we just joined KYH because we believe it is time to:
- Bring transparency to the most essential service of the industry
Scorechain’s mission is to bring trust in Blockchains and digital assets. Mining services are the basis of the network. Providing transparency to the mining industry is one of the missing pieces to have a full picture for the compliance team to perform cryptocurrencies risk analysis.
- Improve crypto compliance officers’ risk assessment with a more detailed analysis
Scorechain experience with customers reminds us how mining services risk assessment can be difficult. It is true that the source of wealth and origin of funds often have direct or indirect relationships with mining services. What is the level of criminality whereas it is implied or explicit?
- Assess the reputation of mining services
Scorechain’s work is to de-anonymise the Blockchain. Mining pools, cloud mining and other related services today are included in Scorechain risk assessment methodology. Having some new researches and standards will once again sharpen the analysis.
- Bring trust on miners to both the crypto community and traditional finance
It is true the crypto ecosystem sometimes lies too much on community-based information and there is a lack of some legitimate and standard criteria to enhance risk analysis efficiency and AML risk appetite.
- Open dialogue with regulators to find common ground
The mining industry is often ignored or undervalued by regulators but standards and consensus need to be added for network sustainability. Having a clear terminology as well as fair red flags and guidelines will contribute to the crypto compliance harmonisation and trust.
What Scorechain will bring to KYH?
As a cryptocurrency Risk-AML compliance leader, Scorechain hopes to bring its knowledge to the KYH community. With an already extensive naming on the Bitcoin, Ethereum, Bitcoin Cash, Dash, Litecoin, XRP Ledger and Tezos blockchains, the company has named more than 350 mining-related services distributed into types such as block reward, mining pool and cloud mining.
In addition, Scorechain transaction monitoring features and risk-AML features will help to determine the direct and indirect relationship with some miners and illegal or suspicious activities.
As a European leader in cryptocurrency transaction monitoring software for AML/CTF compliance, Scorechain Blockchain Analytics suite helps compliance teams in crypto firms to meet regulatory requirements and to implement a risk-based approach by saving cost and time.
Scorechain Analytics Suite covers Bitcoin including Lightning Network, Ethereum analytics with more than 250,000 ERC20 and stablecoins, XRP Ledger, Litecoin, Bitcoin Cash, Dash and Tezos. The solution provides the risk scoring for each crypto transaction/address/wallet with customisable parameters, which allows the users to identify and manage the ML risks by implementing their internal control policy. The real-time alert system gives the possibility of ongoing transaction monitoring and the reporting system helps them to fulfil their reporting obligations for suspicious activity. Last but not the least, the feature ‘Risk indicators’ helps users red flag suspicious activities at the level of entities/transaction behaviours and jurisdictions with more than 350 risk scenarios.
Want to know more about Scorechain crypto risk AML solution for your crypto business? Contact us at firstname.lastname@example.org
Know Your Hashrate (KYH) is a term coined by Ian Gilmour at SLiC International Ltd, one of a new breed of Institution Grade Digital Asset miners. This concept echoes the usage of KYC, which is a fundamental building block of modern finance today, harking back to the late 1980s, when the drug trade was successfully laundering their profits through the global financial system.
This resource, along with other social media channels on Twitter and LinkedIn, offer some pragmatic ideas for a voluntary Code of Conduct for Regulators, Miners and Institutions. This resource will help pave the way for a dialogue of improved rules of engagement and a debate about how to best integrate the centralized and decentralized infrastructures that exist today.
Sponsors include SLiC International Ltd, Koine, IOUR, Yellaw, Scorechain, Midas Green technologies, Engineered Fluids. With more to be announced in the run-up to Bermuda Tech Week.