The Brazilian Cryptoeconomics Association (ABcripto) announced the signing of a Memorandum of Understanding with the National Association of Credit, Financing and Investment Institutions (Acrefi).

The aim is to strengthen collaboration between traditional and digital financial markets.

ABcripto wants to reduce money laundering and terrorism

According to ABcripto, the focus is on the development and implementation of actions aimed at the Prevention of Money Laundering and Terrorism Financing (PLD/FT). It will promote practices and normative guidelines in these sectors.

According to the protocol, the two institutions will join forces and share their expertise to engage members in the standardization process. In addition, it aims to “disseminate knowledge through educational and awareness-raising actions.”

Read more: How to make money with cryptocurrencies

“The memorandum of understanding with Acrefi represents an important milestone in bringing the cryptoeconomy and traditional financial markets sectors even closer together. The collaboration will allow us to work together to implement best practices and build a safer and more transparent market,” say the leaders of ABcripto’s Compliance Committee, Priscila Maia and Carolina Correa.

One of the goals of the agreement is to develop educational materials and promote initiatives that help mitigate risks and prevent fraud in the financial system. The protocol of intentions also seeks to establish periodic meetings to monitor the progress of the initiatives and plan actions aligned with these objectives.

“This collaboration between the institutions aims, above all, to promote transparency and security in an increasingly dynamic and digital scenario, providing a more robust and protected financial environment for all participants”, says the ABcripto announcement.

Despite its reputation for criminal activity, the truth is that few large criminal organizations use cryptocurrencies to finance terrorism. A report by Chainalysis, for example, showed that entities like Hamas receive a tiny amount of funds via cryptocurrencies.

Finally, even in cases where this happens, entities have more tools to prevent the transfer of resources. In 2023, Tether blocked USDT funds linked to a human trafficking syndicate. These funds were held in self-custody wallets.

The article ABcripto wants to curb terrorist financing with new partnership was first seen on BeInCrypto Brasil.