Crypto Exchange Blockbid Teams Up with Risk Management Firm LexisNexis to Identify Illicit Activities

Currently, Indonesia deems cryptocurrency as a void means of payment because the country believes the technology can be used in illegal activities like money laundering and funding of activities by terrorist groups. But it’s not just this country that holds this opinion but several others as well.

In order to prevent such illicit practices from operating in the digital space, public and private entities are working on a solution. A Melbourne-based cryptocurrency exchange company called Blockbid recently collaborated with risk management giant LexisNexis to achieve just that and more, Cointelegraph reported.

Blockbid is among the first crypto trading platforms that keep consistent vigilance regarding money laundering activities across the globe. Aside from LexisNexis, it also shook hands with security company ThreatMetrix to develop a solid framework for spotting these unlawful practices.

Dubbed Trade with Confidence, this framework aims to identify illicit actors by combining data from physical and digital identity information, government-distributed IDs, biometrics with identification apparatus, addresses, geolocation, behavioral patterns and threat analysis. By combining and sorting through these large data sets, the solution aims to pinpoint which dubious entities are operating within the crypto exchange market and hopefully trace their exact whereabouts.

According to Thomas C. Brown, senior vice president of U.S. commercial industry and global market development at LexisNexis Risk Solutions, the Trade with Confidence initiative will not only act as a crime identifier in the digital space but also function as a means to increase public trust. To further bolster the confidence of users, the approach will follow the same regulatory measures employed by major financial firms as a guideline on how the whole process will operate.

“Implementing similar controls that the biggest banks in the world use adds credibility to cryptocurrency exchanges from a regulator point of view and instills consumer confidence,” Brown said. The ultimate goal is to create a solid security foundation that will promote the growth of Blockbid and other startups in the crypto ecosystem while creating a suffocating atmosphere for illegal activities.