Posted By: Admin
On: September 15th 2017
Category: Entrepreneurship, Bitcoin, Finance
What is AML (Anti Money Laundering) Bitcoin?
Bitcoin is often scrutinized for being pseudonymous. Government officials do not like the fact they cannot directly associate Bitcoin transactions with user identities. Cryptocurrency exchanges perform through KYC and AML checks to ensure all customers are screened. This is why there is now a “new version of Bitcoin,” known as Bitcoin AML. A bit of an unusual concept, but it may have some merit.
AML BITCOIN IS NOT YOUR AVERAGE CRYPTOCURRENCY
There are some concerns regarding Bitcoin and more regular cryptocurrencies. Although exchanges dealing with cryptocurrencies are performing thorough user checks to figure out their identity and obtain proper documentation to back it up, government officials are still concerned. Earlier this year, China’s government forced all exchanges to step up their AML effort. As a result, these platforms halted withdrawals for quite some time, which sent some shock waves throughout the cryptocurrency community.
All of this begs the question as to why there is a need for an AML version of Bitcoin in the first place. Some people feel there is a lot of benefit to such a new currency, because it is important to distinguish between Bitcoin and Bitcoin AML itself. These are two very separate currencies. Bitcoin is a cryptocurrency, whereas AML Bitcoin is a digital currency with some form of centralization behind it. However, this seems to miss the point since decentralized currencies are not designed to be controlled by any means.
NAC Foundation is the entity responsible for creating AML Bitcoin. The currency is currently set to launch on October 1st, 2017, which will be quite an interesting date to keep an eye on. It appears this new digital currency will come with its own patent-pending Anti-Money Laundering algorithm, although the exact specifics of this technology remain shrouded in mystery. The goal is to comply with existing AML and KYC laws, although it is a bit unclear why a “new version” of Bitcoin needs to be created.
Some people may recall the NAC Foundation, as they are also the ones who came up with the idea of Atencoin, a cryptocurrency which tried to do some things very differently. It appears it is this AtenCoin which will rebrand to AML Bitcoin on October 1st. The currency is tailored to be bank and government friendly, while still gaining the respect from academics all over the world. Whether or not this currency will strengthen the social sector and be beneficial to future regulation of new forms of money, remains to be seen.
The AML Bitcoin project will have a database which can be compared with criminal and sanction list databases. Some of the lists the database can be cross-referenced with include the FBI’s Most Wanted List and the Canadian SOFI List, according to the website. The centralized aspect of this digital currency revolves around the compliance features it brings to the table. The blockchain used by this project is private regulated yet still boasts some public features as well.
On the technical side, it appears AML Bitcoin will be a proof-of-work currency using the X11 algorithm. There is a block time of 64 seconds with a transaction fee of 0.0001 AML per 1,000 bytes. A total of 26 million AML will be created, with the first 24 million premined by the NAC Foundation. It is an interesting concept, although it remains to be seen whether or not this concept will catch on in the future. An AML version of Bitcoin is certainly something unique, although it is not in the same league as the real thing.
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