The conference shed light on how distributed ledger technology, also known as blockchain, has the potential to diminish anonymity in crypto-asset transactions.Cryptocurrencies have gained popularity due to their anonymous trading environment, where individuals can use pseudonyms and conduct transactions without face-to-face interactions. However, as the crypto industry grows and matures, the notion that “crypto is anonymous” is becoming less true.
The information stored on a blockchain is immutable and highly secure, enhancing the overall security of the system. Blockchain offers diverse business applications, with cryptocurrencies being the most well-known example. For instance, mixers and tumblers are utilized to mix crypto assets belonging to different people, obscuring the true ownership and client identity.
FICA requires accountable institutions to identify and verify clients and identify the beneficial ownership of legal entities.