<h1>Auto-Layout</h1>
<p>Figma&#39;s recent update introduces enhanced Auto-Layout. Content now automatically wraps when the
viewport width is below a specific measurement.<br><img src="/km/autolayout_01.png" alt="Auto-Layout 1"></p>
<br/>
<br/>

<p>Designers can also set minimum or maximum width for containers in Figma. Once the container reaches
the minimum width, it will automatically start wrapping the content.<br><img src="/km/autolayout_02.png" alt="Auto-Layout 2"><br><br/> These new features empower responsive designs, combining wrap auto layout with minimum and
maximum width/height settings for containers.</p>
<br/> 
<br/>

<h1>2. Variables</h1>
<p>Variables are a powerful tool for systematizing your design.</p>
<br/>

<h2>Types of Variables</h2>
<table>
<thead>
<tr>
<th>Variable Type</th>
<th>Defined By</th>
<th>Can Be Applied To</th>
</tr>
</thead>
<tbody><tr>
<td>Color</td>
<td>Solid Fills</td>
<td>Fill Colors, Stroke Colors</td>
</tr>
<tr>
<td>Number</td>
<td>Number Values</td>
<td>Text Layers, Corner Radius, Minimum and maximum width/height, Padding and gap between</td>
</tr>
<tr>
<td>String</td>
<td>Text Strings and Variant Names</td>
<td>Text Layers, Variant Instances</td>
</tr>
<tr>
<td>Boolean</td>
<td>True/False Values</td>
<td>Layer visibility, Variant instances with true/false values</td>
</tr>
</tbody></table>
<br/>

<h2>Managing Variables</h2>
<p>Creating a design system with variables is more flexible and convenient than using styles. For
example:</p>
<p><img src="/km/variables_01.gif" alt="Variables Example"></p>
<p><em>Image Credit: Figma</em></p>
<br/>

<p>This approach allows easy upstream changes without manually reworking downstream elements.</p>
<br/> 
<br/>

<h2>Modes Variables</h2>
<p>Variables also enable setting different design modes, such as dark and light mode or variations for
different devices. This helps manage color, spacing, radius, and other values across modes.</p>
<p><img src="/km/variables_02.png" alt="Modes Variables Example"></p>
<p><em>Image Credit: Figma</em></p>
<br/> 
<br/>

<h1>3. Advanced Prototyping</h1>
<p>New features:</p>
<ul>
<li>Set variables</li>
<li>Conditional</li>
</ul>
<p>Variables power advanced prototyping, allowing dynamic screen updates based on variable changes.
Prototyping interactions and variable binding make this possible.</p>
<br/>

<h2>Set Variables</h2>
<p>Step 1 : Set a number variable named &#39;LikeCount&#39; with an initial value of 0.
<img src="/km/prototyping_01.png" alt="Set Variables Step 1"></p>
<br/>

<p>Step 2 : Bind the variable to the number next to the like button.
<img src="/km/prototyping_02.png" alt="Set Variables Step 2"></p>
<br/>

<p>Step 3 : Button interaction - On click - Set variable &#39;#LikeCount&#39; with logic <code>#LikeCount + 1</code>.
<img src="/km/prototyping_03.png" alt="Set Variables Step 3"></p>
<br/>

<p>Step 4 : Clicking &#39;Like&#39; increases the count.</p>
<br/>
<br/>

<h2>Conditional</h2>
<p>Step 1: Set a number variable named &#39;itemCount&#39; with an initial value of 0.</p>
<p><img src="/km/prototyping_04.png" alt="Conditional Step 1"></p>
<p><em>Image Credit: Figma</em></p>
<br/>

<p>Step 2: Select the button and add interaction - on click - Conditional.</p>
<p><img src="/km/prototyping_05.png" alt="Conditional Step 2"></p>
<p><em>Image Credit: Figma</em></p>
<br/>

<p>Step 3: Now you can apply a simple logic to the button by entering:</p>
<pre><code class="language-javascript">if #itemCount &gt; 0 set variable #itemCount = #itemCount - 1
else #itemCount &gt; 0 set variable #itemCount = 0
</code></pre>
<br/>

<p>This logic ensures that when users click on the &#39;-&#39; button, the number will automatically decrease
by 1. The &#39;else&#39; condition prevents negative values.</p>
<br/>
<br/>

<h1>4. Dev-Mode</h1>
<p>Features:</p>
<ul>
<li>Support different coding languages and dimension units</li>
<li>Enhanced designer communication</li>
<li>Easy asset download</li>
<li>Compare changes</li>
<li>Component playground</li>
<li>Figma for VScode</li>
</ul>
<br/>
<br/>

<p><img src="/km/devmode_07.png" alt="Dev Mode Toggle"></p>
<p>Dev-Mode enhances design and development collaboration.</p>
<br/>
<br/>

<h2>Coding languages and units support</h2>
<p>Generate production-ready CSS, iOS, or Android code snippets from designs. Customize code using
plugins.</p>
<p><img src="/km/devmode_01.png" alt="feature1"></p>
<br/>

<h2>Enhanced designer communication</h2>
<p>Use the &quot;Ready for dev&quot; icon to identify completed design elements. Stay informed about design
changes.</p>
<p><img src="/km/devmode_02.png" alt="feature2"></p>
<br/>

<h2>Easy asset download</h2>
<p>Download assets with one click, even if not displayed in the Asset area.</p>
<p><img src="/km/devmode_03.png" alt="feature3"></p>
<br/>

<h2>Compare changes</h2>
<p>Effortlessly compare design changes between versions.</p>
<p><img src="/km/devmode_04.png" alt="feature4"></p>
<br/>

<h2>Component playground</h2>
<p>Explore component variants without affecting the design.</p>
<p><img src="/km/devmode_05.png" alt="feature5"></p>
<br/>

<h2>Figma for VScode</h2>
<p>Use the Figma plugin for VSCode to inspect Figma files, collaborate with designers, and receive code
suggestions.</p>
<p><img src="/km/devmode_06.png" alt="feature6"></p>
<br/>
<br/>
<br/>
<br/>

<p>References: <a href="https://www.youtube.com/watch?v=jBXy30VwC_U&t=1097s">Mizko</a>,
<a href="https://help.figma.com/hc/en-us">Figma Learn</a>,
<a href="https://www.youtube.com/watch?v=Tx45NcbU6aA&t=224s">DesignCourse</a>,
<a href="https://www.youtube.com/watch?v=sNK-cPmnx94">CoderOne</a></p>


Bringing the Design and Development World Closer Than Ever Before

<p>Today, we will be collaborating with two prominent AI platforms, ChatGPT and Midjourney, which have garnered significant recognition in the current AI landscape. Our objective is to explore how these platforms can provide valuable support to UI/UX designers in their work.</p>
<br/>

<h1>Chat GPT</h1>
<br/>

<h2>UX research</h2>
<h3>Define your product</h3>
<ol>
<li>Knowing your potential users.</li>
</ol>
<pre><code class="language-text">Define the target market for a [your product].
</code></pre>
<img width="789" alt="Define the target market for a" src="/km/define.png">

<br/>

<ol start="2">
<li>Picture how your product would be looked like...</li>
</ol>
<pre><code class="language-text">Outline the key features and benefits of [your product].
</code></pre>
<img width="789" alt="Outline the key features and benefits of" src="/km/feature.png">

<br/>

<p>These prompts are helpful for designers to clearly grasp the basic concept of the product. Moreover, they can be expanded upon to delve deeper into various aspects.
With ChatGPT, you can save a significant amount of time on Googling and gathering data on your own.</p>
<br/>

<h3>User interview</h3>
<ol>
<li>Interviews</li>
</ol>
<pre><code class="language-text">I want to interview some [your product] users. I want to find out what makes them loyal users. Write me 10 interview questions I can ask.
</code></pre>
<img width="786" alt="interview" src="/km/interview.png">

<br/>

<ol start="2">
<li>Survey</li>
</ol>
<pre><code class="language-text">I want to conduct a survey for [your product] users to know what makes them loyal users. Also try to learn what&#39;s their pain point now. Can you give me 10 survey questions that I can ask.
</code></pre>
<img width="789" alt="survey" src="/km/survey.png">

<br/>

<p>In this phase, ChatGPT can provide researchers with the foundational framework for both interview and survey questions. However, as a seasoned UX researcher, it&#39;s essential to tailor and refine these questions to align precisely with our specific requirements and objectives. But it is time saving for sure.</p>
<br/>

<h3>Competitor analysis</h3>
<ol>
<li>Knowing who</li>
</ol>
<pre><code class="language-text">Who are a [your product] 5 biggest competitors
</code></pre>
<img width="795" alt="who" src="/km/competitor_who.png">

<br/>

<ol start="2">
<li>Knowing how</li>
</ol>
<p>Continuing from the previous question</p>
<pre><code class="language-text">Who are a [your product] 5 biggest competitors
</code></pre>
<img width="813" alt="how" src="/km/competitor_how.png">

<br/>

<h2>Analysis</h2>
<h3>Persona</h3>
<pre><code class="language-text">Can you build a persona for mining software user including their behavior, wants and need. in table
</code></pre>
<img width="790" alt="persona" src="/km/persona.png">

<br/>

<p>In here, you can also add some specific codition acoording to your previous user research to the persona, like what type of user, age, experience or so to fit your scenario better.
Sometime ChatGPT might give you some insight that you didn&#39;t notice before.</p>
<br/>

<h3>User story</h3>
<pre><code class="language-text">can you give me the user story of [name from previous answer]
</code></pre>
<img width="795" alt="user story" src="/km/user_story.png">

<br/>

<p>It would be more beneficial if you could continue the inquiry after creating the persona. Alternatively, if you have distinct personas in mind, you can inform ChatGPT in advance. This approach enables it to craft more accurate and creative content.</p>
<br/>

<h3>User flow</h3>
<pre><code class="language-text">Create a user flow for [your product].
</code></pre>
<img width="790" alt="user flow" src="/km/user_flow.png">

<br/>

<p>Here, you can incorporate additional conditions, such as considering the devices or environments in which the user flow will be experienced. This ensures that the user flow aligns with the specific requirements of your final product.</p>
<br/>

<h2>Wireframing</h2>
<pre><code class="language-text">Create a wireframe in text for mining software app on desktop that&#39;s friendly and easy adaptive for new user
</code></pre>
<img width="790" alt="截圖 2023-08-22 下午4 16 32" src="/km/wireframe.png">

<br/>

<p>Given that ChatGPT is a text-based AI, it&#39;s incapable of directly generating visual content like wireframes. However, it can provide a fundamental outline of the elements that should be present in your final wireframe. It&#39;s still our job to visualize it.</p>
<br/>

<h2>UX Writting</h2>
<p>This is my personal favorite part.
Ask ChatGPT for UX writting ideas, in any languages you want!</p>
<ol>
<li>Page description</li>
</ol>
<pre><code class="language-text">Give me 10 interesting and creative captions for 404 page
</code></pre>
<img width="813" alt="404" src="/km/404page.png">

<br/>

<ol start="2">
<li>Buttons</li>
</ol>
<pre><code class="language-text">Give me 10 idea for the caption of CTA buttons
</code></pre>
<img width="821" alt="CTA" src="/km/cta_btn.png">

<br/>

<ol start="3">
<li>Headline or Content</li>
</ol>
<pre><code class="language-text">Give me 10 Professional headline for a blockchain solution company&#39;s web
</code></pre>
<img width="821" alt="headline" src="/km/headline.png">

<br/>

<h2>UI Design</h2>
<h3>Checklist for UI Design</h3>
<pre><code class="language-text">Create a checklist for UI elements for a perfect mining software in a table
</code></pre>
<img width="826" alt="checklist" src="/km/checklist.png">

<br/>

<p>This table can serve as a foundation for ensuring that your product&#39;s user interface covers the essential elements for a seamless user experience.
You can adapt and expand the checklist based on your specific functionalities and requirements. </p>
<br/>

<h3>Color palettes</h3>
<p>It&#39;s really fast to generate color palettes with ChatGPT, you can just tell it your brand color and the elements you need then everything will be done in few second.</p>
<pre><code class="language-text">Can you give me a bright and energetic color palette for a mining software app in bright mode with the brand color #FFA502 and #1A2E50. Including background, surface, text, button in default, hover and disable state, state color. List them in table
</code></pre>
<img width="817" alt="color" src="/km/color.png">

<br/>

<p>As a professional UX designer, we know how important accessibility is. So don; don&#39;t forget to check the color you are going to use is complied with Web Content Accessibility Guidelines.
Here is what you can do.</p>
<pre><code class="language-text">Can you check if this color palette comply with Level AAA
</code></pre>
<img width="792" alt="AAA" src="/km/aaa_check.png">

<br/>

<pre><code class="language-text">can you fix that problem and give me a new color palette 
</code></pre>
<img width="793" alt="fix" src="/km/aaa_fix.png">

<br/>

<p>Here you go, A color palette with your brand voice and user-friendly is done. And you can always make little change to ensure the color palette fits your needs.</p>
<br/>

<h3>Generate svg code (Beta)</h3>
<p>As we know ChatGPT is an AI text-based model, so it can&#39;t generate SVG images directly. However, it can help you generate SVG code for a simple icon.
Let&#39;s see how it work.</p>
<pre><code class="language-text">can you generate an email outline icon in svg code
</code></pre>
<img width="801" alt="icon" src="/km/mail_icon.png">

<br/>

<p>Result:</p>
<img width="116" alt="截圖 2023-08-23 上午11 24 34" src="/km/mail_icon_result.png">

<br/>

<p>Looks OK right? Let&#39;s try something more complicated...</p>
<pre><code class="language-text">can you generate a cute cat outline icon in svg code
</code></pre>
<img width="822" alt="截圖 2023-08-23 上午11 29 37" src="/km/cat_icon.png">

<br/>

<p>Result:</p>
<img width="131" alt="截圖 2023-08-23 上午11 26 30" src="/km/cat_icon_result.png">

<br/>

<p>Now we know ChatGPT doesn&#39;t have any sense of art or even doesn&#39;t know what a cat should be look like.
But hope one day it will learn then it can be pretty helphul.</p>
<br/>

<h1>Midjourney</h1>
<p>Midjourney is a generative artificial intelligence program and service generates images from natural language descriptions.
It&#39;s a really useful tool for UI designers to create some images for their products.</p>
<h2>Background:</h2>
<img width="533" alt="截圖 2023-08-23 上午11 38 57" src="/km/md_bg.png">

<h2>Illustration:</h2>
<img width="536" alt="截圖 2023-08-23 上午11 40 19" src="/km/mid_illustration.png">

<h2>Landing page idea</h2>
<img width="535" alt="截圖 2023-08-23 上午11 43 25" src="/km/mid_landingpage.png">

<h2>Banner</h2>
<img width="532" alt="截圖 2023-08-23 上午11 46 10" src="/km/mid_banner.png">


<br/>

<p>Midjourney can generate images in various styles, color palettes, and scales. It&#39;s highly beneficial, eliminating concerns about copyright. 
Even though it&#39;s not perfecteverytime, it can offer you different idea on your visual work.</p>
<p>For more Information about how to use Midjourney please check: <a href="https://github.com/CAFECA-IO/WorkGuidelines/blob/main/AI/Graphic/Midjourney.md">Midjourney</a></p>


Today, we will be collaborating with two prominent AI platforms, ChatGPT and Midjourney, which have garnered significant recognition in the current AI landscape. Our objective is to explore how these platforms can provide valuable support to UI/UX designers in their work.

How AI can be your design assistant

<h1>Preface</h1>
<h2>What is money laundering?</h2>
<p>Money laundering is a complex and illegal process through which individuals or organizations attempt to conceal the origins of illegally obtained money, making it appear as if it comes from legitimate sources. The primary goal of money laundering is to &quot;clean&quot; the so-called &quot;dirty money&quot; so that it can be freely used without raising suspicion.</p>
<h2>Why use crypto currency as a way to do money landering?</h2>
<p>During the early days of cryptocurrency, there were relatively fewer regulations and established systems in place to manage its use. This lack of oversight, combined with the inherent features of cryptocurrencies such as anonymity, pseudonymity, and the absence of central authorities, created an environment in which criminals could more easily hide their identities and engage in illegal activities.
Also it&#39;s easier to transfer the asset out of the country they stay, in this case it&#39;s harder for investigators to track the money.</p>
<h2>Nowadays</h2>
<p>As cryptocurrencies gained popularity and attention, regulatory efforts increased to address these concerns. Governments and financial authorities around the world began developing and implementing measures to regulate the cryptocurrency space, including: </p>
<ul>
<li>Know Your Customer (KYC) and Anti-Money Laundering (AML) Regulations</li>
<li>Licensing and Registration for  cryptocurrency businesses</li>
<li>Taxation</li>
<li>Blockchain Analysis</li>
</ul>
<p>Today, we will introduce some common behavioral patterns that serve as red flags in cryptocurrency trading.</p>
<h1>Multiple Transfers</h1>
<ul>
<li>Making multiple small amounts of transactions</li>
</ul>
<p>According to regulations, large and irregular transactions can attract the attention of government or financial authorities. All legitimate financial institutions that require their customers to undergo Know Your Customer (KYC) procedures are obligated to report such transactions. This heightened scrutiny exposes criminal activities to authorities.</p>
<p>That&#39;s why one of the reason why criminals would do multiple trasnfers is to structure transactions in small amounts that are under record-keeping or repoerting threshold.
It&#39;s also a common pattern in cash money laundering.</p>
<ul>
<li>Making multiple high-value amounts of transactions</li>
</ul>
<p>By spacing out the transactions and making them appear regular, criminals may attempt to make the transactions seem more like legitimate trading or investment activity. This can further mask the illicit nature of the funds and decrease suspicion.</p>
<ul>
<li>Making multiple transactions to multiple virtual assets service providers.</li>
</ul>
<p>Criminals often try to transfer their assets to virtual asset service providers located in somewhere that is no relation to where the customer lives or conducts business; or jurisdictions with either weak or no Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT) regulations. This strategy complicates investigators&#39; efforts to trace the origin of the funds and resources.</p>
<h1>Multiple Receives</h1>
<p>Making frequent transfers to the same virtual asset (VA) account within a specific period of time, especially when it involves multiple individuals, transactions from the same IP address, or significant amounts, can raise red flags for several reasons:</p>
<ul>
<li><p>Criminals often use a single address to aggregate funds obtained from various sources, including illegal activities such as scams, theft, or ransomware. Multiple receives into a single address can indicate the consolidation of these illicit funds.</p>
</li>
<li><p>Structuring, also known as smurfing, involves breaking down large sums of money into smaller transactions to avoid triggering reporting thresholds and attracting regulatory attention.</p>
</li>
<li><p>In some cases, middlemen or intermediaries may be involved in cryptocurrency transactions. These middlemen may use multiple receives to distribute funds or to anonymize the transaction. This can make it difficult to identify the ultimate sender or receiver.</p>
</li>
</ul>
<h1>Multiple Deposits</h1>
<p>This typically occurs with individuals or organizations that possess multiple virtual asset addresses. 
They break down their illicitly obtained funds into smaller amounts, deposit them to one or multiple exchanges or virtual asset service providers then converting them into various cryptocurrencies. This process incurs additional transaction fees,but without logical business explanation.
Or after depositing, they withdrawing virtual assets (VAs) from a virtual asset service provider (VASP) and promptly transferring them to a private wallet effectively transforms the exchange or VASP into a money laundering mixer. It usually happens without additional exchange or investment activity, which is an unnecessary step and incurs transaction fees.</p>
<h1>Multiple Withdraws</h1>
<p>Criminals involved in money laundering may withdraw funds in multiple small transactions to avoid detection. This technique, known as &quot;structuring&quot; or &quot;smurfing,&quot; is used to break down large sums of money into smaller, less conspicuous withdrawals to circumvent reporting thresholds.</p>
<p>In some cases, identity thieves may make multiple withdrawals from a victim&#39;s account as part of their fraudulent activities.</p>
<h1>With Black List</h1>
<p>Addresses linked to criminal activities, such as hacking, fraud, theft, or other unlawful actions, will be placed on BAIFA&#39;s Black List.
Accepting funds from addresses on the Black List is considered to be aiding money laundering.</p>
<p><a href="https://www.treasury.gov/ofac/downloads/sdnlist.pdf">OFAC-Specially Designated Nationals and Blocked Persons List</a></p>
<p><a href="https://sanctionssearch.ofac.treas.gov">OFAC-Sanctions List Search</a></p>
<h1>With Darknet (Darkweb)</h1>
<p>The darknet itself is not inherently illegal. It&#39;s a part of the internet that is intentionally hidden and not indexed by traditional search engines.
It can provide a level of privacy and anonymity for users. It&#39;s used by journalists, activists, whistleblowers, and individuals living in countries with strict censorship to communicate and share information without fear of surveillance or censorship.</p>
<p>Meanwhile, Darknet markets, also known as underground or hidden markets, are online platforms that operate on the dark web and are accessible through specialized software. These markets facilitate the buying and selling of a wide range of illegal goods and services, including drugs, stolen data, counterfeit documents, hacking tools, and more. Criminals use these markets to conduct illicit transactions.</p>
<p>Many darknet markets primarily use cryptocurrencies like Bitcoin for transactions. Cryptocurrencies provide a degree of anonymity, making them an attractive choice for conducting illegal activities. Criminals often use cryptocurrencies to pay for illegal goods and services on darknet markets.</p>
<h1>With Mixing Service</h1>
<p>Mixing and tumbling services are methods used in the world of cryptocurrency to enhance the privacy and anonymity of transactions. These services aim to obscure the source and destination of funds, making it difficult to trace the flow of cryptocurrency.</p>
<h3>Mixing Services (Coin Mixing or CoinJoin):</h3>
<ul>
<li>Multiple users send their cryptocurrency to a mixing service.</li>
<li>The mixing service combines these funds into a pool.</li>
<li>It then redistributes the cryptocurrency to the intended recipients, but in a way that makes it challenging to associate specific inputs with specific outputs.
This process breaks the transaction history, enhancing privacy.</li>
</ul>
<h3>Tumbling Services (Bitcoin Tumblers or Tumblers):</h3>
<p>Tumbling services work similarly to mixing services but with a focus on Bitcoin. They aim to &quot;tumble&quot; or &quot;shuffle&quot; Bitcoins to break the transaction history. Here&#39;s how it works:</p>
<ul>
<li>Users send their Bitcoins to a tumbler service.</li>
<li>The tumbler service mixes these Bitcoins with other users&#39; coins.</li>
<li>The service then sends the mixed Bitcoins back to the users, but in randomized amounts and at different times.</li>
<li>As a result, it becomes challenging to link the original Bitcoins to their source.</li>
</ul>
<h1>With Gambling Site</h1>
<p>Another method commonly employed for cryptocurrency money laundering involves online gambling. With the increasing acceptance of cryptocurrencies on various online gambling and gaming websites, criminals have found a seemingly simple way to legitimize their illicit funds. Here&#39;s how it works:</p>
<ul>
<li>Access to Online Gambling Sites: Criminals access online casinos, sports betting platforms, or other gaming websites that accept cryptocurrencies as a means of payment.</li>
<li>Purchasing Credits: They use their cryptocurrency to purchase in-game credits, virtual chips, or tokens on these platforms.</li>
<li>Gameplay: To create a façade of legitimacy, the money launderers engage in actual gameplay, making bets and playing rounds of games.</li>
<li>Cashing Out: After a few rounds or bets, they cash out their cryptocurrency, often in multiple small transactions.</li>
<li>Legitimization: By doing so, they provide themselves with a plausible explanation for the source of the funds. They can assert that their winnings in these online games account for the money cashed out.</li>
</ul>
<p>It&#39;s important to recognize that money launderers are not motivated by the desire to profit from gambling; rather, they seek to legitimize their ill-gotten gains and avoid suspicion. </p>
<h1>Large Transfer (High-value Transfer)</h1>
<ul>
<li><p>Risk of Money Laundering: To save the time,high-value transactions can be used by criminals as a means to legitimize illicit funds. Money launderers may seek to move significant sums of money through legitimate channels to obscure the source of their illegal gains.</p>
</li>
<li><p>Potential for Terrorist Financing: High-value transactions can also be indicative of terrorist financing, where individuals or organizations attempt to move substantial funds to support illegal activities or terrorist operations.</p>
</li>
<li><p>Scam or fraud: High-value transfers may be connected to investment scams or fraudulent schemes where victims are convinced to transfer substantial sums of money, often with the promise of significant returns.</p>
</li>
<li><p>Hacking: Hackers may target financial institutions, exchanges, or payment processors, gaining access to their systems. This access can enable them to initiate high-value transfers directly from these institutions.</p>
</li>
</ul>
<p>When investigating the potential link between a high-value transfer and illegal activity, investigators carefully evaluate factors like the source of funds, transaction history, purpose of the transfer, and relationships involved. This is why the &quot;Know Your Customer&quot; (KYC) process is a crucial step for financial institutions. KYC helps identify irregular transactions and discrepancies between the transaction amount and the client&#39;s background, enabling institutions to report and address suspicious activities effectively.</p>
<h1>Large Receipt (High-value Receipt)</h1>
<p>High-value receipts and high-value transfers share the same concept but involve different roles for senders and recipients.</p>
<h1>Large Deposit (High-value Deposit)</h1>
<ul>
<li><p>Money Laundering: Criminals involved in illegal activities often need to legitimize their ill-gotten gains. Making a large deposit is one way they may attempt to introduce significant sums of money into the legitimate financial system.</p>
</li>
<li><p>Layering: Money launderers may engage in a technique called &quot;layering,&quot; which involves multiple transactions to obscure the source of funds. Large deposits can be one part of this process as they may be followed by other transactions aimed at further disguising the origin of the money.</p>
</li>
<li><p>Unusual Activity: Deposits into an account or a VA address are significantly higher than ordinary with an unknown source of funds, followed by conversion to fiat currency, which may indicate theft of funds.</p>
</li>
</ul>
<h1>Large Withdraw (High-value Withdraw)</h1>
<ul>
<li><p>Money Laundering: Suspicion arises, particularly when engaging in VA-fiat or VA-VA currency exchanges with the potential for financial losses. This could indicate attempts by criminals to convert and withdraw their illicit funds, possibly after undergoing multiple money laundering processes or utilizing Virtual Asset Service Providers as mixers before transferring the assets to another address.</p>
</li>
<li><p>Hacking: Hacking enables unauthorized access to financial systems, accounts, or crypto wallets, leading to large amount withdrawals. This may stem from stolen credentials, ransomware, phishing, account takeovers, and insider threats.</p>
</li>
</ul>
<h1>To High Risk Location</h1>
<p>When customers send funds to unregulated or inadequately regulated Virtual Asset Service Providers (VASPs), it can raise suspicions, particularly when the customer&#39;s location does not align with the jurisdiction of the VASPs involved. This heightened risk is associated with concerns related to illicit activities, money laundering, and attempts to evade Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) controls.</p>
<h2>Black List on FATF (Updated in June, 2023)</h2>
<p>The &quot;Black List&quot; identifies countries or jurisdictions with significant deficiencies in combating money laundering, terrorist financing, and proliferation financing. These nations are urged to take counter-measures to safeguard the international financial system from the risks associated with these illicit activities.</p>
<ul>
<li>North Korea</li>
<li>Iran</li>
<li>Myanmar</li>
</ul>
<h2>Grey List on FATF (Updated in June, 2023)</h2>
<p>The &quot;Grey List&quot; highlights countries collaborating with FATF to address money laundering, terrorist financing, and proliferation financing issues. Increased monitoring signifies their commitment to swiftly resolve these deficiencies within agreed timeframes.</p>
<ul>
<li>Albania</li>
<li>Barbados</li>
<li>Burkina Faso</li>
<li>Cameroon</li>
<li>Cayman Islands</li>
<li>Croatia</li>
<li>Democratic Republic of Congo</li>
<li>Gibraltar</li>
<li>Haiti</li>
<li>Jamaica</li>
<li>Jordan</li>
<li>Mali</li>
<li>Mozambique</li>
<li>Nigeria</li>
<li>Panama</li>
<li>Philippines</li>
<li>Senegal</li>
<li>South Africa</li>
<li>South Sudan</li>
<li>Syria</li>
<li>Tanzania</li>
<li>Türkiye</li>
<li>Uganda</li>
<li>United Arab Emirates</li>
<li>Vietnam</li>
<li>Yemen</li>
</ul>
<h1>Transactions with Privacy Coins</h1>
<p>Privacy coins like Monero, Zcash, or Dash are designed to provide enhanced privacy and anonymity. While this feature can protect users&#39; identities, it also makes it challenging for authorities and financial institutions to trace and monitor transactions. This lack of transparency can trigger concerns, as it may hinder the detection of illicit activities such as money laundering, tax evasion, and the financing of criminal enterprises.</p>
<h2>How Privacy Coins work</h2>
<ul>
<li>Ring Signatures (Monero) 環狀簽名: In Monero, for example, when a user initiates a transaction, their transaction is mixed or &quot;ringed&quot; with several other transactions on the network. This makes it challenging to determine which specific input (or source) corresponds to the actual sender&#39;s funds.</li>
</ul>
<img width="100%" alt="What is Ring Signatures" src="/km/ring.png">

<ul>
<li>Zero-Knowledge Proofs (Zcash) 零知識證明: In Zcash, zero-knowledge proofs enable the network to verify that a transaction is valid without revealing the sender&#39;s address, receiver&#39;s address, or transaction amount. The mathematical proof demonstrates that a transaction meets the network&#39;s rules without revealing any sensitive information.</li>
</ul>
<img width="100%" alt="What is Zero-Knowledge Proofs" src="/km/ZKP.png">

<ul>
<li>Stealth Addresses 隱身地址: Privacy coins often use stealth addresses to provide recipients with a unique, one-time public address for each transaction. This means that even if someone knows your public address, they cannot link it to specific transactions because each transaction uses a different stealth address.</li>
</ul>
<img width="100%" alt="What is Stealth Address" src="/km/stealth.png">

<ul>
<li><p>Confidential Transactions 保密交易: Some privacy coins, like Grin or Beam, implement confidential transactions. These cryptographic techniques encrypt the transaction amount, making it challenging for outsiders to determine the exact value being transferred.</p>
</li>
<li><p>CoinJoin (Optional): Some privacy coins offer optional CoinJoin functionality, which allows multiple users to pool their transactions into a single transaction, making it difficult to trace individual transactions within the mix.</p>
</li>
</ul>
<h1>References</h1>
<p><a href="https://www.getmonero.org/resources/moneropedia/ringsignatures.html">Moneropedia</a></p>
<p><a href="https://blog.chain.link/zero-knowledge-proof-use-cases/">Chainlink Blog</a></p>
<p><a href="https://www.fatf-gafi.org/content/dam/fatf-gafi/reports/Virtual-Assets-Red-Flag-Indicators.pdf.coredownload.pdf">FATF</a></p>
<p><a href="https://home.treasury.gov">U.S. DEPARTMENT OF THE TREASURY</a></p>


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