Bitcoin AML as “purity” and “dirt”: why it is needed and which services to use

Although Bitcoin is currently on the rise, it is not the only cryptocurrency that deserves attention. There are many promising altcoins and tokens, and many experts believe that they are now capable of generating the most income. Whatever investment decision you make, you may need to exchange Bitcoin for another cryptocurrency or for fiat currency (rubles, US dollars, etc.) – we offer a detailed overview of the main ways to do this, compiled by the editors of cryptomore.com.

Verifying Bitcoin Purity aml is required in cases where coins are obtained from potentially dangerous sources. Crypto exchanges with KYC have the highest security – there is a high probability of withdrawing pure cryptocurrencies from them, but with exchangers and private transfers, as well as Bitcoin mixers, everything is much more dangerous.

In this article, Profinvestment experts examined what “dirty” BTC means and how to check Bitcoin for purity, as well as why it is necessary. We recommend reading it, as the topic is useful and relevant given the rules AML more rigid on the exchanges.

TOP 6 services for Bitcoin AML verification according to experts:

1. Matthew . A custodial wallet and crypto exchange equipped with a built-in function to check the purity of Bitcoin.
2. AMLbot . An easy-to-use Telegram bot that lets you check Bitcoin and other popular coins.
3. Getblock . Blockchain browser equipped with telegram bots to check BTC purity. The starter pack costs $5 for 5 checks.
4. Crystal Blockchain . The project conducts research in the area of ​​blockchain and AML compliance for cryptocurrencies.
5. Chan . One of the leading companies in the field of blockchain research, working primarily with corporations.
6. AMLnode . A crypto processing service with built-in AML verification, supports 25+ currencies.

Comparison of AML services for Bitcoin verification:

Briefly about the main thing

• AML verification The purest Bitcoin is an analysis of the cryptocurrency's movements in order to ensure that it has not been used in illegal activities.
• AML (Anti-Money Laundering) refers to a set of procedures designed to prevent the laundering of illegally obtained funds.
• Despite Bitcoin's anonymity, all transactions are recorded in a blockchain public, allowing analysis and tracking.
• To perform AML verification of Bitcoin purity, specialized tools and services such as Chainalysis are required, Matthew or AMLBot. These tools analyze blockchain transactions to identify connections to illegal activity or suspicious addresses.
• AML verification of Bitcoin purity may not provide 100% guarantee of success since there are ways to bypass these measures, such as using mixers or private cryptocurrencies .

Why check Bitcoin purity?

“Dirty” Bitcoins are those that have previously been involved in any criminal schemes: hacker attacks, trade in illegal goods or services, terrorist financing, money laundering.

Many people still believe that Bitcoin, as originally stated, guarantees complete privacy and anonymity to users. Of course, wallets can be anonymous in one way or another (they do not require registration or verification for use). But all transactions are documented in a blockchain public. Bitcoin is a completely transparent system, and the technology that tracks and analyzes payments is developing at a rapid pace. Therefore, if a dirty transaction is discovered, for example, money stolen from an exchange, then it will not be difficult for exchanges and other platforms to blacklist such assets.

What will happen if these coins reach you?

• You won’t be able to trade it on trusted exchanges. By checking AML (anti-money laundering), the platform will identify the dishonest origin of the funds and block them.
• Along with the cryptocurrency, the account will most likely be blocked. A trial awaits you, during which you will have to prove that you are not involved in criminal schemes.
• There is a high chance that you will receive fines for using dirty coins, even if you are not aware of the problems with it.

This is why it is so important to make sure that the cryptocurrency is clean and not involved in anything illegal. Unfortunately, according to research , up to 46% of all cryptocurrencies in circulation may be somehow involved in criminal acts.

Bitcoin Verification

Where do dirty coins come from?

The most common options:

• various scams and criminal schemes;
• buying drugs or other illegal products on the black market;
• money laundering through cryptocurrency;
• theft of exchanges , wallets and other platforms.

The activity of AML services, which can be standalone or integrated into exchanges or other software, is aimed at detecting such cryptocurrency assets. Many AML systems provide services specifically for companies so that the verification is carried out automatically via API. In this case, special attention is paid to cryptocurrencies received from Bitcoin mixers or from unregulated crypto exchanges.

In May 2021, mining company Marathon announced which had mined the first Bitcoin block that was fully compliant with US regulatory requirements. The company used technology that prevented it from processing transactions involving assets “flagged” as dirty. Marathon is not the most influential miner in the world, but even so, this move shows him as an innovator in Bitcoin’s future integration with global AML rules.

By the way, the coins generated by the network during the mining process are crystal clear by default, regardless of who mined them.

How to protect yourself from dirty money

Despite the large number of dirty bitcoins on the network, the paradox is that few ordinary users own such bitcoins. After all, most people trade on large, regulated exchanges.

There is one more nuance.

Coins don’t stay dirty forever. Let’s say a hacker has hacked a DeFi protocol and keeps the stolen coins in his wallet. They are considered “dirty.” Sooner or later, a hacker will think about laundering them. But once the funds start leaving their addresses, they pass through many other wallets. Are they still dirty after all this? Some experts believe that they are not, since it is proven that they no longer belong to the criminal. If you look closely, almost all of us have Bitcoin in a wallet that was once controlled by Silk Road (a website for drug trafficking and other illegal drugs, closed in 2013). But these Bitcoins cannot be considered corrupted, since they have already passed through a large number of wallets.

Rota da Seda

Some expert tips on how to protect yourself from dirty BTC:

• Avoid Bitcoin mixers and similar services. Mixers are usually used when cryptocurrencies are obtained from the darknet or are clearly associated with illegal activities. The average user does not need them.
• Create two wallets, one with guaranteed clean coins and one with questionable coins. This way, you will know from which wallet you can safely send coins to exchanges.
• Trade only in regulated crypto exchanges that have KYC verification. This way, you can be sure that your counterparties are also honest and have confirmed their identity.

Finally, there is another option: using special software to check the purity of Bitcoin. It quickly studies the history of a specific transaction and checks the database to see if those funds were involved in illegal activities.

Programs and services for determining the purity of BTC

1 Matthew

Matbea AML

• Web Site: matbea.com/scoring
• Application methods: online on the website.
• Price: 0.1 EUR (~10 reais) by check.
• Criptomoedas: BTC, LTC, ETH, BCH, USDT.

The exchange wallet Matthew is interested in customer security and offers an online service for checking blockchain transactions directly in the user's personal account. It is available to anyone who has sufficient funds on their balance to pay the check. The process takes into account more than 20 criteria for the level of risk of illegal activities.

2 GetBlock

• Web Site: https://getblock.net/
• Application methods: via API, online on the website.
• Price: from 30 cents by check.
• Criptomoedas: BTC, ETH, XRP, BCH, LTC, BSV, ETC, XLM.

The service is implemented as a blockchain explorer with the ability to check any wallet or transaction. GetBlock allows you to run decentralized applications by connecting to the chosen blockchain and getting help from qualified specialists. Various analysis tools are supported; we are developing our own blockchain browser. GetBlock is positioned as the most customer-centric solution – much attention is paid to technical manuals and support.

It is based on Binance Smart Chain (BSC). Supported APIs for connections: JSON-RPC, WS, GraphQL, etc. Built-in AML transaction verification. The application can also be combined with any third-party software.

3AMLBot

AMLBot

• Web Site: https://amlbot.com/
• Bot: https://t.me/cryptoaml_bot
• Application methods: bot on Telegram, online on the website
• Price: from 30 cents per check
• Cryptocurrencies: BTC, ETC, XRP, ETH, BCH, USDT (OMNI), BSV, LTC, ERC-20 tokens

AMLBot is one of the best and most famous programs for AML checking of Bitcoin and other cryptocurrencies. It has been operating since 2019, checking wallets and transactions for involvement in illegal activities.

The user specifies the crypto address on the website or in the Telegram bot and clicks “Verify”. The process can take up to 30 seconds while the service searches different databases and assesses the resulting risk. The information is checked against more than 20 sources. As a result, the result is determined – the wallet/transaction is assigned the category of “risky”, “suspicious” or “trustworthy”. All results are detailed, you can see the percentage of clean and dirty products.

4 Chainalysis

Chain Analysis AML

• Web Site: chainalysis.com/chainalysis-kyt/
• Application methods: online on the website
• Price on request
• Cryptocurrencies: almost any

Chainalysis rightfully holds the title of leader in the field of Bitcoin and other cryptocurrencies purity verification; used by professionals to verify transactions, addresses, decentralized finance protocols. The result presents a wide range of parameters by which security and risks can be assessed.

5 No AML

Now AML

• Web Site: https://amlnode.com/
• Application methods: API
• Price: up to 1% per transaction
• Cryptocurrencies: BTC, BNB, LTC, XRP, XEM, etc.

AMLNode is a web interface for businesses. It allows merchants to accept cryptocurrency payments and at the same time verify their purity. Received Bitcoins can then be instantly converted and withdrawn to a fiat account in Euro. The solution is quick and easy to integrate and provides a full web account with notifications and detailed statistics.

You can enable anti-phishing, two-factor authentication, and several convenient payment methods. The service’s transaction fee ranges from 0.5% to 1%, and AML verification is already included in the price. Compared to card processing, AMLNode has significantly lower fees and is also easier and faster to use.

6 Crystal Blockchain

Cristal Blockchain

• Web Site: https://crystalblockchain.com/
• Application methods: online on the website
• Price on request
• Cryptocurrencies: BTC

A professional solution for analyzing and tracking cryptocurrency transactions to meet the requirements of exchanges and financial institutions. Crystal Blockchain’s analytical and research tools are also used by government agencies.

Any business that wants to accept payments or otherwise interact with cryptocurrencies can connect to an API solution that analyzes transactions, evaluates them according to region-specific rules, and notifies if suspicious activity is detected.

Other software

Examples of AML service providers used by regulated exchanges or exchangers:

• Elliptic Enterprises Limited (United Kingdom)
• Elliptic Vault Limited (United Kingdom)
• chain analysis, Inc.
• Coinfirm Limited (United Kingdom)
• Neutrino srl (Italy)

FAQ: Frequently Asked Questions

What is AML and KYC verification?

The first stands for anti-money laundering and the second stands for Know Your Customer. AML includes anti-money laundering measures, which include KYC, i.e. the collection of information about each customer.

How do Bitcoins get dirty?

When they participate in money laundering, they are stolen from the exchange, used to pay for prohibited goods, etc. The blockchain is transparent, so it is not difficult to track the direction of the coins.

Why is it dangerous to use dirty bitcoins?

All regulated cryptocurrency exchanges check incoming cryptocurrencies according to AML principles. If the coins are dirty, there is a risk of funds and account blocking, as well as fines.

What measures will help you receive only clean coins?

Ideally, you should only use regulated and trusted platforms and minimize interactions with Bitcoin mixers and exchanges without KYC. It is recommended to immediately check the purity of Bitcoin if these rules are not followed and funds are received from unverified sources.

How to check the purity of Bitcoin?

The following solutions help monitor the purity of BTC transactions for individuals and businesses: AMLBot, Crystal Blockchain, GetBlock, AMLNode.

How much does it cost to check dirty bitcoin and are there free services?

Checks usually cost up to 30 cents a piece, but for testing purposes, new users can get the opportunity to check the purity of their Bitcoin 1 to 3 times for free after creating an account.

How to withdraw dirty bitcoin?

Look for services without integrated AML verification. These include, for example, the 60cek exchanger.

Conclusion

At first glance, it may seem that since Bitcoin is interchangeable, all BTC are the same and cannot differ from each other. Technically, this is true. But if you look at it from a different point of view, the method of obtaining a particular coin has a certain influence. Bitcoins that will never be accepted by a decent exchange are considered dirty. Sometimes they are sold at a discount on unregulated services. On the other hand, some are willing to pay more for crystal clear BTC, for example, freshly mined. It turns out that the origin of Bitcoin can influence its value. One way or another, owning dirty coins does not benefit anyone, and checking the purity of Bitcoin is a relevant procedure for all categories of users.

Link from the source