Coinbase, Gemini and others join forces to combat human trafficking

Cryptocurrency exchanges Coinbase, Paxful, Gemini and BitFinex have all joined the Anti-Human Trafficking Cryptocurrency Consortium, or ATCC. Launched in April 2020 by the Anti-Human Trafficking Intelligence Initiative, the consortium is a nonprofit focused on intelligence sharing, best practices and the development of tools to fight trafficking.

"We are positioning organizations to play an active role in the prevention, detection and reporting of human trafficking and child exploitation. The Anti-Human Trafficking Intelligence Initiative and the ATCC are developing comprehensive programs, training, data and tools catered to combatting the issue."Crypto exchanges are monitoring transactions.

Specifically speaking, the four exchanges that are members of the ATCC will be monitoring crypto transactions to detect characteristics associated with human trafficking.

"You don't have this in traditional fiat. I hope that any potential bad actor gets the point that you cannot use crypto for human trafficking and other illcit activies. We know who you are, we see your transactions, and we will report you to authorities."

"Coinbase is involved with other groups whose objectives are identifying illicit flows of criminal money from not only human trafficking, but also ransomware, fentanyl sales, and money laundering."Crypto is clean but can be cleaner.

While these numbers may sound high, it's important to note that human trafficking is a business that generates over $150 billion per year.

The Financial Crimes Enforcement Network issued an advisory on human trafficking on Oct. 15 this year stating that "Convertible virtual currency" is being used by human traffickers to hide illicit proceeds.

The group's Bitcoin transactions have been linked with the purchase of prostitution ads on one of the largest human trafficking marketplaces, Backpage, which was seized in April 2018.

According to Clegg, the crypto exchanges will monitor and determine unusual characteristics commonly seen with human trafficking transactions, serving as the focal point.

"This is the same method as in traditional finance, where banks detect human trafficking movements and then alert the FBI," she remarked.