These bitcoin services in Spain are starting to track all your transactions.


The task will be performed by the watchdog of the Merkle Science blockchain.

The platforms will enforce smart illegal practices.

The bitcoin exchange Criptan and the cryptocurrency storage service Onyze, operating in Spain, have formed an alliance with the blockchain company Merkle Science. From now on, all transactions made by users on these platforms will be monitored for suspicious patterns that indicate possible illegal activity.

The agreement was announced on Tuesday July 20 by the intelligence company applying to blockchains. In a statement, the parties said they will have several courses of action, which include: identifying criminal wallets, working with suspicious patterns and preparing so-called “black lists”.

The goal will be not only to detect possible fraudulent transactions, but also investigate possible financial crimes committed using cryptocurrencies… We do not know what the limit that companies will have in investigations, since in any case, the task would theoretically correspond to the police or the criminal investigation authorities.

Fraud related amounts (fraud, graph) have dropped significantly in 2020. Source: Chainalysis.

“The association demonstrates the commitment of these companies to develop an interoperable ecosystem as digital assets become a key pillar of the financial industry. “Smart regulation” is accompanied by further development and innovation in the industry, “- explained in a press release from Merkle Science.

Although for security reasons the blockchain analyst company does not disclose how its “rules of conduct mechanism” works, it should be noted that monitoring covers all incoming transactions and all outgoing transactions… That is, users must comply with KYC / AML or Know Your Customer rules and anti-money laundering measures.

Criptan and Onyze’s actions are in line with the strict rules set by the European Union for trading bitcoin and other cryptocurrencies. The transaction monitoring guidelines are also in line with those issued in the past by the Financial Action Task Force (FATF), one of the bodies that proposed most of the rules for Bitcoin.

Blockchain monitoring, business millionaire

The intelligence work associated with blockchain operations is nothing new. There are companies on the market like Chainalysis, Elliptic, CipherTrace and Coinbase that offer your services to private companies or government agencies to identify possible crimes committed using cryptocurrencies.

As reported by CriptoNoticias, it is a multi-million dollar business that uses pattern recognition techniques called “heuristics.” P2P bitcoin exchange platforms like LocalBitcoins or Paxful have announced alliances like Criptan, Onyze, and Merkle Science in the past.

The United States is one of the most obvious cases of such hiring. Agencies such as the Secret Service, the Internal Revenue Service (IRS), the Securities and Exchange Commission (SEC), and even the military have signed a contract for some surveillance services in blockchain networks.

Despite all the ongoing investigations, a Chainalysis report published in February this year showed that less than 1% of the value transferred with bitcoins and cryptocurrencies came from crime.

Back to top button