Crypto Advisory

Crypto
advisory

AML Compliance

We can help you stay on the right side of crypto regulation.

AML for digital assets refers to the laws, rules, and policies that prevent criminals from turning unlawfully obtained cryptocurrency into fiat currency. Cryptocurrency has a higher AML risk with the concern of high degree of anonymity and support of cross-border transaction. The regulatory bodies enact stringent anti-money laundering (AML) legislation to prevent money laundering via Virtual Assets Service Providers (VASPs), including cryptocurrency exchanges, custodian services, DeFi protocols, and NFT marketplaces.

Our team can help design, implement, and assess your compliance program.

Virtual Asset Tracing

Virtual assets are traceable.

Using cryptocurrency has a high degree of anonymity. When cybercriminals deal in cryptocurrency, they deploy tools such as crypto mixers to enhance user privacy and facilitates anonymous transactions by jumbling up data on the origin, destination and parties involved in a crypto transaction.

Sphere State Group conducts comprehensive investigations across on-chain and off-chain analysis that helps our client to identify financial flows and recover assets. A lot of our work is focused on fraud and recovering assets lost due to fraud.

Know-Your-Customer

Know Your Customer (KYC) is a process that requires individual users to provide proper identification before engaging on at platform. One purpose of this is to prevent the use of anonymous accounts for illicit purposes, and as part of that, to make sure the business has an accurate record of users. In addition to preventing financial crime, KYC can also help to protect users from fraud and other forms of illegal activity. It helps to ensure that users are transacting with legitimate entities and not with fraudulent actors who may be using fake identities to engage in criminal activity.

Know You Business (KYB) is similar: the goal of KYB is to prevent money laundering, terrorist financing, and other illicit activities that can be facilitated by the use of cryptocurrency. KYB requires businesses to provide certain information, such as their legal name, physical address, and registration number, to cryptocurrency exchanges or other service providers. This information is then verified by the service provider to ensure that the business is legitimate and complies with relevant regulations.

KYB is an important part of the regulatory framework for cryptocurrency, as it helps to ensure that businesses using cryptocurrency are operating in a transparent and legal manner. However, the process can be time-consuming and costly for businesses, particularly smaller ones.

We can help design and implement these systems for crypto needs.

Transaction monitoring

The implementation of transaction monitoring systems uses algorithms to identify suspicious activity, such as large transactions or transfers to high-risk countries, and flag them for further investigation. The transaction monitoring systems can track the movement of cryptocurrency from one address to another. This is done by analyzing the transaction data on the blockchain, which is a public ledger that records all cryptocurrency transactions. By analyzing this data, transaction monitoring systems can identify transactions that involve large amounts of cryptocurrency, multiple addresses, or other suspicious behaviour.

Sphere State collaborates with transaction monitoring system provider to prevent financial crime in the cryptocurrency space. By analyzing transaction data and identifying patterns of suspicious behaviour, these systems help to ensure that cryptocurrency remains a safe and secure means of financial exchange.

Regulatory advisory