XRP Addresses to Be Given Risk Score In Line with FAFT Money Laundering Guidelines

According to reports, Ripple’s XRP addresses will be given risk scores. The goal is to reach the FAFT requirements. In a bid to expand its mainstream acceptance, Ripple, the company, must now have to follow the FAFT’s new anti-money laundering guidelines. Hence, the decision to give XRP addresses risk scores.

According to the press release, it is understood that Ripple, the San Francisco-based crypto giant, recently joined forces with the regtech firm Coinfirm. Per the Forbes report, the primary purpose of the partnership with Coinfirm is for Ripple to make its native cryptocurrency, XRP compliant with the new FAFT requirements.

XRP (XRP) Price Today – XRP / USD

Name Price24H (%)
XRP (XRP)
$0.322464
2.42%

The Purpose of A risk Score

According to Forbes, Coinfirm, Ripple’s new partner, and one of the top providers of KYC and anti-AML solutions on the market won’t reveal the identities of any particular XRP holders after the process has been completed, the company’s CEO revealed. Coinfirm’s CEO Pawel Kuskowski puts it this way:

“After the process, I won’t know you personally. We do not require any personal data.”

The risk score will place Ripple’s XRP under the FAFT’s requirements. Since the goal isn’t just collecting user personal data, it will instead, be capable of detecting any suspicious XRP addresses that linked to crypto exchanges without any mandatory form of verification (or ventures that typically operate from countries that already defy FAFT rules. An example, of such a country is Iran).

Based on the level of risk attached to any particular XRP user address, it is going to be given a score that ranges from zero to 99 (hence, covering the least to the highest chances or probability of money laundering with the token).

The report also adds that Coinfirm will be able to detect the specific tools that are typically used for laundering cryptocurrency. Some of these include coin mixing and clustering.

The FAFT’s Clampdown on Illegal Financial Actives

As already reported by U.Today, the FAFT now stipulates that crypto exchanges must share data about their customers. This is done in a bid to prevent or block illicit financial activities via crypto exchanges. Even though the move by the regulator is set to clamp down illegal activities, its recent stipulations have the potential to delay transactions and even increase the cost of transactions.

The move could also end up pushing away many small and medium crypto firms from the business scene. Despite these concerns in the crypto space, ignoring the recommendations set down by the regulator will not bode well for any of the affected entities. Any entity that chooses to step outside the legal grey zone will face the law.

XRP Price Prediction 2019: XRP’s Current Price Position

According to data given by coin market cap, the price of XRP is currently sitting at $0.432760 at press time. The number three ranked digital asset by market capitalization is down by 8.74% on the day as is the case with most digital assets today. As of the time this content was published, coin market cap lists XRP’s market capitalization and circulating supply at $18,421,124,989 and 42,566,596,173 XRP respectively. The digital asset also has a daily trade volume of $3,343,502,859.

XRP’s ROI sits at 7,267.58%. The coin’s highest point in the last 30 days stood at $0.505467. While it’s list point in the same period was at $0.379967.

Brian Lubin is a Crypto News Reporter for Smartereum. He's well-known for his reports on the crypto markets.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.