Market Derivative Risks and Regulation of Cryptocurrency Trading Using “PaoFen” Platforms

With the accelerated pace of digital transformation and the popularity of third-party payments, the financial industry has been facing escalating threats of blackmail attacks. Currently, the use of the “Paofen” platform for money laundering is an emerging form of cryptocurrency laundering, providing payment and settlement assistance for fraud, gambling and other illegal crimes, contributing to the spread of cybercrime and greatly undermining the order and security of cyberspace. This paper analyzes the operation process of “Paofen” money laundering from the concept of “Paofen”, proposes the characteristics of identifying “Paofen” money laundering, and proposes to strengthen cross-sectoral cooperation and guide third-party payment institutions to strengthen their control of “Paofen” money laundering. It also proposes to strengthen cross-sectoral cooperation, guide third-party payment institutions to strengthen monitoring and analysis of “Paofen” money laundering, and block the spread of the Internet. For the governance of network blackmail, we should achieve a chain-wide crackdown on related crimes, construct a modeled abnormal data monitoring model, and strengthen the publicity of data security governance related to network payment accounts.