One of the biggest criticisms of crypto-based businesses has been weak AML procedures. Ironically, the ones who raise these concerns, large financial organizations are the ones who have been lax in doing the same.

Morgan Stanley was recently fined in $10 million USD for not being able to curb money laundering. The fine was imposed by the Financial Industry Regulatory Authority over the Anti-Money Laundering program of Morgan Stanley. The reason is that the bank has “failed” to coordinate the supervision of suspicious transactions, according to the regulator. The AML program of Morgan Stanley is completely automated but it did not have enough critical data to detect all the money that is sent abroad using the bank. This includes money sent to foreign exchanges in countries that are deemed “risky” by the regulator.

They are not the only ones. For instance, last month, Deutsche Bank was raided by the police and it was discovered that the bank was heavily invested in money laundering and that it had created accounts for its clients in many taxes havens. It was another one that came under fire for money laundering this year. At the time, the CEO of the company resigned as there were allegation s that hundreds of billions of dollars were laundered using the bank.

In a strak contrast to the trends of large financial institutions, crypto businesses had acknowledged their shortcomings and have constantly tried to improve on them.

The largest crypto exchange in the United States and one of the largest players in the industry, Coinbase, is now experimenting with new ways to let the users control their information better. At the moment, Coinbase has 17 people explored decentralized identity solutions to be used in the company later.

Ripple offers a mostly-centralized digital currency payment platform that completes transactions in minutes, and at lower cost than traditional international payment products, such as SWIFT. The TRON currency’s peer-to-peer payment system aims to remove mobile app stores as intermediaries between content developers and consumers, extending savings to both. Other cryptocurrency technologies aim to streamline medical billing services, substitute traditional retail debit purchases, and potentially replace the need for banking and fiat currency.

In June 2018, Financial Services Agency (FSA) of Japan had ordered bitFlyer, QUOINE, BTC Box, Bit Bank, Tech Bureau and Bit Point to enhance their internal-auditing and user-protection systems. the FSA launched inspections at licensed platforms in April as part of its increasing scrutiny of domestic exchanges following the $530 million hack on Coincheck earlier this year.

Failure to oblige to KYC procedures by big banks is just the tip of the iceberg. They have not only not implemented AML techniques in their services they have laundered money for drug kingpins and mafias historically. Cryptocurrencies no only provide an independence from such instituteions, they are an active threat to it.

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