38% of Crypto Exchanges Interact With High-Risk Entities in 25% or More of Their Transactions
/ of 30 sources
Leading cryptoasset data provider CryptoCompare has published an updated version of its cryptocurrency Exchange Benchmark. The report details that 38% of crypto exchanges interact with high-risk entities in 25% or more of their transactions.
According to CryptoCompare’s Exchange Benchmark, interactions with high-risk entities are considered when the cryptoasset data provider is raking exchanges. These interactions are measured according to CipherTrace’s Interaction Risk Score, which profiles transactional risk by “deanonymizing risky entities and illicit activities to identify criminal sources of funds and money laundering exposure.”
CryptoCompare then scores exchanges according to the percentage of transactions conducted with entities deemed high-risk. These include criminals, darknet markets and vendors, gambling projects, malware operators, cryptocurrency mixers, ransomware operators, and OFAC sanctions addresses.
The benchmark details that addresses with up to 25% of transactions conducted with these entities receive some points, but those above said mark receive none. Notably, 38% of cryptoasset exchanges were above it.
Data shared in the report detailed that Top-Tier cryptoasset exchanges, those graded AA to B in the report, interact less with these entities, while Lower-Tier exchanges, those rated C-E, interacted more. While both AA-related exchanges, Coinbase and Gemini, had no interactions with high-risk entities, some of the exchanges with A, BB, and B ratings did.
As CryptoGlobe reported, the Exchange Benchmark also revealed Top-Tier exchanges are gaining market share against Lower-Tier exchanges. It details that top-tier exchanges accounted for 32% of the global volumes in Q4 2019, while in the first quarter of this year they accounted for 36%.
In the second quarter of 2020, the Top-Tier exchanges already accounted for 40% of the global trading volume. In June these exchanges got to a 46% market share. Lower-Tier Exchanges, have seen their share of the space’s total trading volume drop from 68% to 60% in the last three quarters.
Featured image via Pixabay.
Coinbase Offers DAI Holders 2% Interest
U.S. crypto exchange Coinbase is now offering a way for users in six countries holding Dai to earn up to 2% back from rewards.According to a July 29...
Binance Confirms Crypto Debit Cards Shipping to Europe
Binance has confirmed the shipping of its crypto debit cards to Europe following a tweet from Binance CEO Changpeng Zhao, or CZ, several days ago.“We...
Instant Crypto Exchange Launches Pro Platform as Market ‘Matures’
An instant crypto exchange says it has launched a new platform that aims to help newcomers bridge the gap between basic investing and active...