Like any means of value transfer and storage, solutions based on blockchain technology are vulnerable to fraud. According to the Association of Certified Fraud Examiners (ACFE) fraud is:

An intentional act or omission designed to deceive others, resulting in the victim suffering a loss and/or the perpetrator achieving a gain.

However, our studies show that the allegations raised by regulators and compliance professionals, that anonymity and decentralized architecture of digital currencies makes them perfect means for fraud, are far from being accurate.

Unlike the traditional financial system, where due to bank secrecy, transactions can be tracked only within a particular financial institution and identity of the customer is examined only in relation to transactions within that particular institution, with the proper tools blockchain transactions can be tracked end to end.

Furthermore criminals may be aware that all of the current and historical transactions are publicly available, and even if identities cannot be assigned to addresses now, it may be possible in the future for all historical transactions.

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