Bitcoin has gained new momentum thanks to its recognition by the U.S. regulator, as well as the launch of new funds that allow investors to invest their savings in the cryptocurrency.
The Russian stock market is isolated from global exchanges, but the law does not prohibit buying, holding and disposing of CFA as property. This means that the Russians also have the opportunity to invest in cryptocurrency. How to do it as safely and legally as possible? Let’s explore these questions in detail.
Let’s start by dispelling the myth that cryptocurrency is anonymous. Since the transactions pass through an open blockchain, you can track which wallets the coin has been to. And if a cryptocurrency has once participated in illegal activity, it is permanently “dirty” and will not be accepted by major venues.
If you type in a query related to cryptocurrency exchange on the Internet, you will get a choice of hundreds of exchangers, aggregators and p2p sites exchanging cryptocurrency.
Some exchangers are phishing pages whose task is to get customers’ money and disappear with it. Other exchangers are not particularly fastidious about the quality of cryptocurrency and law-abiding counterparties. For example, they can use the cryptocurrency with which the drugs were bought. The clients of the exchangers could be criminals who stole the cryptocurrency.
To avoid problems, when choosing a site, pay attention to whether it has AML/KYC procedures.
Many cryptocurrency exchanges have such procedures. Western exchanges sometimes block Russian accounts, so we will look at the Russian cryptocurrency exchange AWEX. It did not impose restrictions on investors, has its own customer service offices in Moscow, Dubai and other cities of the world (unlike most of the gray exchangers, which are “afraid” to communicate with customers offline).
The procedure of cryptocurrency verification on AWEX works as follows. After the cryptocurrency enters the exchange, a special AML-department of the company checks it with the help of Chainalysis (analysts of this company track all the known wallets of criminals and can provide information on the involvement of the coins in illegal activities).. There is also a check of the counterparty with the service Sumsub to determine the level of risk.
If it turns out that there was an attempt to transfer “dirty” cryptocurrency or the counterparty is involved in illegal activity, the cryptocurrency is not accepted and any work with the violator is blocked.
To give customers confidence in the “legal purity” of the cryptocurrency they receive, operators, aml-specialists and other AWEX employees adhere to AML/KYC policies, and these points are made in their job descriptions.
Unfortunately, the Russian legislation does not yet provide licensing of cryptocurrency exchanges, but AWEX branch in Dubai has received a license to conduct activities related to CFA. Obtaining a license from the UAE regulator is associated with passing a rigorous screening process for candidates. In the interest of investors, a government agency ensures that the exchange complies with UAE law.
How to keep cryptocurrency from being stolen from your cryptocurrency wallet
After registering at AWEX, the user can go through a verification procedure, and if the account is hacked, this procedure will not allow attackers to dispose of customer funds.
The account-to-IP binding service will prevent intruders from taking advantage of a customer’s AWEX account, the security system simply won’t even allow them to log in.
With Google’s 2FA two-factor authentication system enabled, even knowing your password, username and IP will prevent criminals from logging into your account.
Let’s form the main talking points and summarize the topic of buying cryptocurrency safely:
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It is better to buy and store cryptocurrency on large platforms and in cryptocurrency wallets, which are not seen in the restrictive measures against the Russians;
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When choosing a site, it is better to refuse exchangers that do not consider it necessary to be interested in the quality of the received cryptocurrency;
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It is better to make sure in advance that the cryptocurrency exchanger declares and complies with AML/KYC procedures;
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After registration, it is imperative to be verified, connect two-factor authorization and tie your IP to the account.
Disregarding the rules of “legal purity” can lead to problems with law enforcement, and “dirty” cryptocurrency is not always easy to sell or exchange.
As part of the formation of an investment cushion, thanks to its decentralized structure, cryptocurrency can be an excellent refuge for Russians in difficult times, and it is better to go this way with a reliable partner.