""Blockchain transactions normally are multi-hop transactions. What does multi-hop mean? That means that there will be multiple steps... all these intermediate wallets are not a sanction wallet at the time of the transactions.""
""An exchange might process a deposit from an intermediate wallet that appears completely clean. Only later, after the funds have completed their multi-step journey, does law enforcement identify the final receiving wallet as a sanctioned entity.""
Public blockchains allow unrestricted asset transfers, creating compliance challenges for tracking fund flows. Digital assets often move through multiple wallets, unlike traditional banking's direct transfers. This complexity complicates sanctions enforcement, as seen in allegations against Binance for processing transactions linked to sanctioned Iranian entities. Existing financial regulations do not accommodate the decentralized nature of crypto networks, necessitating new frameworks for effective compliance and regulation in the evolving landscape of digital finance.
Read at TNW | Blockchain
Unable to calculate read time
Collection
[
|
...
]