One of the prominent law enforcement cooperation agencies of the European Union, known as Europol has recently logged a request into the European Union. In their request, Europol has requested to make the Know-Your-Customer (KYC) policies stricter on the cryptocurrency businesses.
The request was made directly to the EU member states to look into the entire situation and enforce even tighter rules on the cryptocurrency-based companies with respect to KYC policies.
In their proposal, they also mentioned the cryptocurrency exchanges. They demanded that the cryptocurrency exchanges should become more responsible for the regulatory sector.
In their proposal, the Europol stressed that the crypto-exchanges should interact and increase their communications with the regulatory authorities. Europol stressed that the communication between crypto-exchanges and the regulators is very important.
This would help both entities to keep tabs on the criminal activities and hacks that have started increasing in numbers. In the past couple of years, the surge in the number of users joining the cryptocurrency industry has increased significantly. This is why the number of crypto-attacks and crypto-hacks started occurring quite often.
Europol recently released their report on the 5th of October on the Internet Organized Crime Threat Assessment. As per the report, the number of the cyber hackers and criminals have become more adaptable to the dark web.
They added that these criminals on the dark web have become more dependent and reliant on the privacy-enhancing mediums. These involve encrypted email services, bulletproof hosting (BPH), and privacy-enhanced crypto-assets.
Europol commented that the adaptation of the criminals and hackers on these privacy-enhancing factors has now become a real problem. They shared their concern that due to these factors, the global law enforcement agencies are unable to take any action against these criminals.
However, Europol was also found to commend the involvement and cooperation of the cryptocurrency entities. They commented that the crypto entities especially, crypto-exchanges have demonstrated tremendous cooperation in the entire matter.
Cryptocurrency exchanges from the European region are constantly enforcing the KYC and AML policies. They have even made it mandatory for the customers to adhere to the Know-Your-Customer and Anti-Money Laundering policies.