After reports that merchants and holders of Zugacoin cryptocurrency are unable to make withdrawals, the founder of the Nigerian crypto, Sam Zuga responded by accusing unnamed ignorant people of working to tarnish the project. One Nigerian expert has advised prospective zugacoin investors to prioritize learning finer details about the project before investing.

As promoters of zugacoin a Nigerian cryptocurrency ostensibly created to end poverty in Africa continue to tout the token as a legitimate digital currency, there are growing reports on social media of merchants and holders of the coin who have failed to withdraw. These reports have sparked allegations that the project is yet another scam which is cleverly disguised as a complex cryptocurrency project.

The complaints and allegations against the project have, in turn, prompted Archbishop Sam Zuga, the founder of Zugacoin, to issue a flurry of Facebook posts condemning ignorant people peddling false information about the project. In one of his latest posts, Zuga said he was not engaged in cryptocurrency trading but was instead building a digital financial system to correct a financial future. He added that his crypto, which automatically gives you 200% profit of any amount you transfer to it, is only being used as a driver of the system into that future.

In the lengthy August 25, 2022 post, the founder denies allegations of manipulation within the Zugacoin ecosystem. Zugas post also explains how the ecosystem works and why some holders may be having problems withdrawing. He said:

The only challenge is lack of knowledge from the users. Anyone can withdraw conveniently if the people that are withdrawing are less than the people who are depositing. No system can survive if what is going out is more than what is coming in.

There is no problem anywhere in the Samzuga ecosystem. The only problem is your ignorance of how the system has been designed to work. Merchants can transfer money from the Merchant area of the merchant app to the Merchants wallet and from there to P2P conveniently.

In his earlier Facebook posts, Zuga similarly attacks unnamed individuals whom he accuses of besmirching the noble project with their ignorance.

However, despite Zugas spirited defense of the crypto project, influential players in Nigerias blockchain industry told Bitcoin.com News they remained unconvinced. They point to the projects lack of transparency or its apparent exploitation of Nigerian peoples affinity to religion or their religious leaders as red flags.

One of the players, Ophi Rume, aka Cryptopreacher, told Bitcoin.com News that unless the Zugacoin founder reveals the rest of the team behind the project it will be difficult to make a judgment about the projects legitimacy. Noting that scammers often exploit peoples desperation and ignorance, Rume, a blockchain analyst and educator, said ordinary Nigerians should only consider investing in this project after doing some basic due diligence. He noted:

As basic as searching for the words; Is Zugacoin a scam or a Ponzi scheme via Google, Nigerians can read and learn a lot of things about this project. Also, before investing Nigerians need to know those involved in the project. They need to know the board of directors, the developers and whether the project is on Github.

According to Rume, when prospective investors learn or become aware of such details about this project they will likely decide against investing and thus preserve their meager savings.

Meanwhile, another expert who wished to remain anonymous lamented scammers growing use of religious titles when marketing their projects to unsuspecting victims. According to the expert, when a dubious cryptocurrency project is fronted by a religious leader, people will refrain from criticizing it. The expert explained:

I have found that no one wants to be seen as the prophet of doom or enemy of progress when it comes to big and questionable projects like Zuga. Besides, the founder is a Christian leader with a considerable following who has also used his influence to project Zuga out there. Remember Inksnation.

For Paul Ezeafulukwe, the former president of Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) and the team lead at Bitget Africa, zugacoin is the most volatile cryptocurrency and one that has totally failed to deliver on its promises. Some of the promises include claims that the cryptocurrency will end poverty as well as help Nigeria reduce its debt.

Another promise they have made which is like tales by moonlight is their ability to pay $97 billion dollars worth of Nigerias national debt and also help Africa clear her debts. From their position it is clear they dont understand how cryptocurrencies work, I believe the promoters were sold a lie that your ability to mint a token could translate to instant monetary value without building an ecosystem to support the utility of the token, explained the ex-SIBAN leader.

Ezeafulukwe said it is unfortunate that some poor and gullible individuals have invested in zugacoin based on these promises. For investors who are still thinking of buying zugacoin, Ezeafulukwe said they must look at these two promises [poverty eradiction and paying off Nigerias debt] and do simple research to find out if these things are possible by a single individual.

Register your email here to get a weekly update on African news sent to your inbox:

What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Continued here:
Zugacoin Controversy: Supposed Poverty Eradicating Cryptocurrency Criticized as Just Another Complex Nigerian Ponzi Scheme Featured Bitcoin News -...

It wont be wrong to say that this has been the harshest crypto winter of all time. For the first time, companies like WazirX and Binance fought over the ownership of the company. Not to forget, the regulatory uncertainty from global regulators has deepened the wound of investors who have lost their entire life savings.

So, if you plan to leave the the world of cryptocurrency, heres a step-by-step guide on exactly what to do.

To leave the crypto space, one thing you should do is sell all your digital assets and liquidate them via a crypto exchange. Any crypto platform that holds your cryptos should be able to help you withdraw your assets.

If your portfolio is bleeding red but you dont plan on quitting crypto yet, then the best option is to send your cryptos to a safe and secure hardware wallet. Store them until the bear market reverses. However, make sure that you always remember your private keys (equivalent to your crypto password). Keep it in a safe place so that you always have access to them. Cryptocurrencies are stored in your crypto wallets built on blockchain technology that stores digital assets cryptographically, making it impossible for someone to hack your private keys.

Without private keys, you cannot claim ownership of any crypto assets. Court orders or any other legal document wont be worth it if you dont have private keys.

Crypto market is volatile. Every day you see a potential investment opportunity. What makes it difficult to leave crypto space is when you keep on tracking new coins. You have to prevent a change of heart. Try exiting all crypto groups on Telegram, Reddit and everywhere on social media. These groups can build false narratives and promote new coins.

The best investment option for a distraction could be a regulated space like the stock market. If youre keen on investing your money, learn more about the stock market, portfolio building, and switch your interest from crypto to equity markets. It is worth noting that while the stock market is subjected to volatility as well, it has something called a daily lower circuit which safeguards you from losing out on your investment.

See the original post here:
Want to leave crypto? Here's a quick guide to quit cryptocurrency world safely - The Indian Express

Companies with significant ESG commitments to shareholders will not be able to hold investments in cryptocurrencies or NFTs and still meet theirsustainability goals; public companies with these technologies in their portfolios will be responsible for the emissions created by their investments.

Blockchain has become the go-to technology solution for enabling traceabilitythroughout circuitous product supply chains most notably infoodandtextiles.But in the finance world, blockchain has become inextricably linked to the risein popularity of cryptocurrency and non-fungibletokens (NFTs).

While blockchain has proven its value as an emerging solution for certainapplications, there is more to consider about the techs implications specifically, as we think about the role future iterations of blockchain have oncarbon-reduction goals for a rapidly changing climate.

Thats not to say that these technologies will never be carbon neutral; but intheir current iterations, market leaders such as Bitcoin and Ethereumare not sustainable. New currencies and NFT development processes claim to begreener because they dont rely on the same Proof ofWork system that involveshuge amounts of calculations (and thus, processing power) to produce a singletoken. Cryptocurrencies that instead use a Proof of Storage or Proof ofStakesystem use far less energy, as do currencies using a technology called blocklattice which doesnt requiremining.Similar processes are being applied to the NFT market in an attempt to reachcarbon neutrality. At this point, however, it's hard to tell if thesetechnologies, were they to scale, would be any better or even worse for theenvironment.

Therefore, everyone from the everyday individual to the global corporation should welcome the continued evolution of these types of energy-consumingtechnologiesand how theyre created; since, as of now, most cryptocurrencies and NFTs areproduced by methods that are completely at odds with efforts to mitigate climatechange, which affects every living thing on the planet.

These technologies require massive computing power to generate, resulting in anoutsized and irresponsible carbon footprint. In fact, the process is purposelydesigned to be highly energy inefficient, to make it harder to tamper with afiles legitimacy. Bitcoin alone uses as much electricity as an entirecountry.The same goes for NFTs, the security and value of which hinge onenergy-intensive processes a single transaction can use as much electricity asthe average household uses overdecades.

Every cryptocoin mined uses more energy than all those mined before and about21 million Bitcoins have been mined so far. After its mined, cryptocurrencycontinues to generate a vast network of computer connections with everytransaction. Bitcoin and Ethereum activity combinedconsume as muchelectrical energy as an entire nation nearly 290 TWh per year.

2023 could be the tipping point for these technologies as new federal rulesaround carbon accounting are slated to take effect next year. An SECproposalseeks to improve transparency among funds that purport to take Environmental,Social and Governance (ESG) factors into consideration when making investingdecisions. This new reporting regulation will require any publicly tradedcompany to disclose their full carbon footprint and enforce carbon-offset fineson those that greenwash theirprogress.

Companies that have significant ESG commitments to shareholders will not be ableto hold investments in cryptocurrencies or NFTs and still meet theirsustainability goals. Corporations that continue to embrace NFTs andcryptocurrency will face expensive carbon-offset costs and negative brandperception. And once every publicly traded/reputable company pulls out of cryptoand unloads their NFTs to meet their ESG goals, there will be nothing left toprop up these markets.

Sustainability experts might see this on the horizon; but ideally, individualsand corporations will also have the foresight to not continue throwingadditional money into these notoriously energy-intensive technologies until theycan truly be sustainable. Cryptocurrency and NFTs use mind-boggling amounts ofcomputer energy and create substantial greenhouse gas emissions, outweighing anycurrent perceived value. Public companies with these technologies in theirportfolios will be responsible for emissions created by their investments. Thenew federal reporting regulations might mark a fork in the road for thesedigital currency trends.

Published Aug 24, 2022 2pm EDT / 11am PDT / 7pm BST / 8pm CEST

Andrew Blauvelt is Senior Product Director at Atrius part of the Intelligent Spaces Group, a division of Acuity Brands revolutionizing spaces to sense, think and act.

Jol Dsir is Connected Building Solution Manager at Distech Controls, which connects people and companies with intelligent building solutions.

Read more here:
The Hidden Cost of Cryptocurrency and NFTs - Sustainable Brands

Vitalik Buterin, the co-founder of Ethereum, recently discussed the advantages of cryptocurrency over traditional payment methods on Twitter. Buterin claims that considering its convenience and resilience to censorship, the bitcoin sector is still underappreciated.

The 28-year-old programmersaid that crypto offers a

Big boost to international business and charity, and sometimes even payments within countries.

People continue to underrate how often cryptocurrency payments are superior not even because of censorship resistance but just because they're so much more convenient.

Big boost to international business and charity, and sometimes even payments within countries.

Some influential figures in the sector responded to Buterins Tweet.

The thing that makes cryptocurrency payments super inconvenient is taxes

John Squire, a supporter of cryptocurrency, responded to the co-founder of Ethereum and stated that cryptocurrencies are here to stay. Squire declared:

No matter how much they start, no matter how much they try to control crypto, they have come into our lives to stay and nothing and no one can stop it.

Particularly since the 2021 bull run, cryptocurrency has entered the mainstream. When big coins like Bitcoin (BTC) and Ethereum (ETH) made enormous gains immediately, many new and youthful investors flocked to the growing asset class.

Additionally, donations made in cryptocurrencies are now more prevalent than ever. To date, $54 million in bitcoin donations have been used to combat Russia in the conflict in Ukraine. Additionally, as of April 8th, daily contributions to the cause totaled $114 million. Fiat money has historically been expensive and slow to handle international payments.

The bulk of individuals still do not fully comprehend the cryptoverse. Only a small number of people have made an effort to comprehend the inner workings of how transactions occur over a blockchain. Many also worry about hacks and exploits because they frequently plague space.

Bitcoin, Ethereum, and all the specialized assets in between are examples of cryptocurrencies that are still regarded as a marginal trading option. Millions of traders, even those who have dealt in fiat money for decades, nevertheless seem hesitant to accept cryptocurrencies widely. Even more so, the positions of many major corporations and countries remain dreadfully obscure.

Governmental involvement also happens from time to time. People turned to crypto donations, for instance, when the Canadian Truckers protests bank accounts were frozen. However, the private keys to the wallets were somehow obtained by the Canadian government. Many governments are also opposed to the use of cryptocurrencies because it undermines the authority of central banks, a key control mechanism.

There are several excellent reasons to begin using cryptocurrencies inbusiness and to begin investing in it altogether. There are many things thatcan bedoneto profit from its advantages while waiting, even though it can take some time beforestartingto see any significant beneficial adoptions.

Nevertheless, the use of cryptocurrency for payments is growing. Even nations that can control and regulate a cryptocurrency have indicated interest in such a system. One of the cornerstones of the concept, the anonymity aspect of cryptocurrencies, is removed. One thing is for certain, though: crypto is here to stay, and there isnt much the powerful can do to halt the spread of ideas.

Go here to read the rest:
Has Cryptocurrency Been Undermined? Here's What The Ethereum Founder Has To Say - TronWeekly

Australia is set to be the first country to do a virtual stocktake of the cryptocurrency sector, in a move that has global commentators buzzing.

The initial focus for the government will be token mapping, which refers to grouping types of crypto assets based on their technological features and underlying code. Announcing the move on Monday, Australian Treasurer Jim Chalmers called it a first step in a reform agenda.

Australians are experiencing a digital revolution across all sectors of the economy, but regulation is struggling to keep pace and adapt with the crypto asset sector, he said, in a statement released by the Treasury.

As it stands, the crypto sector is largely unregulated, and we need to do some work to get the balance right so we can embrace new and innovative technologies while safeguarding consumers.

Australia is the first country to take the step of token mapping. Is that surprising?

Professor Tan says moves like this demonstrate that Australia (despite any assumptions to the contrary) has regulators who are future and action oriented, and often look to do the right thing when it comes to an ecosystem of emerging technologies.

Heres why Australia is looking to crypto regulation and what impact it could have on crypto investors and businesses alike.

Why does Australia want to regulate the Wild West of the cryptocurrency gold rush?

While investors might be worriedabout the impact regulation could have on the popular blockchain technology, Professor Tan points out there are lots of benefits of regulation, including establishing a framework for equal taxation,helping to prevent fraud and providing stronger protection for investors.

It also could help when it comes to anti-money laundering (AML), engaging in counter-terrorism financing (CTF)and preventing other financial crimes, he says. This is about regulating the 'Wild Wild West'and protecting investors from themselves, even as they are joining what they see as the gold rush on the cryptocurrency exchanges.

How would regulation impact the 'crypto gold rush'? Photo: World Spectrum / Pexels

When it comes to regulating the traditionally decentralised cryptocurrency space, there are fears from some retail investor (a term for a nonprofessional investor) as to what the tax implications could be from new Australian laws and how it might impact how much Capital Gains Tax (CGT) they would have to pay on their exchanges. But the Australian Taxation Office (ATO) can already tax this type of financial productand has been tracking cryptocurrency transactions for years.

For the investors of established crypto assets, nothing has changed as cryptocurrencies like Bitcoin have been regulated and taxable for some time, says Professor Tan. The planned token mapping means that new and emerging forms of crypto assets can be identified, and the government can determine if our existing financial services laws are adequate, or if they require their own special cryptocurrency regulation.

The government doesnt want crypto assets that fall through the cracks in our current regulatory framework.

What impact would regulation have on Australian financial services and fintech companies in the crypto space?

Professor Tan says that the recommendations set down by the Select Committee on Australia as a Technology and Financial Centre will also impact service providers, digital currency exchanges, issuers of crypto assets and other businesses operating in this space.

They will have to offer more transparency about the crypto assets they are offering, he says.

Professor Tan says new regulations would impact businesses in this space. Photo: Alesia Kozik / Pexels

Their revenue may also be affected on two fronts the market may be cautious about investing in those crypto assets, and the increased regulatory scrutiny may mean that some of their existing revenue streams are simply no longer viable.

Will regulations impact all types of crypto?

The token mapping exercise is not meant to be one-off, he explains. It will be ongoing and co-evolving as new forms of crypto assets emerge. Technology could evolve ahead of regulation in the short term, but regulation will also co-evolve so that the objectives of the regulators are met.

Is regulation in the spirit of crypto?

So, a regulatory regime clearly has benefits. But it is not exactly in line with the libertarian principles of cryptocurrency enthusiasts. But Professor Tan says Australia is already a lot more permissive than other regimes (such as those found in Russia, India, China and Turkey).

Some cryptocurrency users might be suspicious of attempts to regulate the digital assets. Photo: Rodnae Productions / Unsplash

l think complete decentralisation is a bit of a pipe dream, he says. Most mainstream investors would still want some extent of recognition and legitimation from the government for their investments.

Very few governments in the world will have an appetite forcomplete decentralisation or its risks associated with terrorism financing or money laundering.

Will other countries follow Australias example?

With Australias move to cryptocurrency regulation being widely covered by the worlds press this week, Professor Tan says the interest in Australias moves in trying to regulate this section of the financial markets isn't surprising.

But he also warns that whether they follow suit will depend on their attitude to crypto in the first place.

As a world first, other countries will likely be looking closely at the outcome of this exercise. But in some, less crypto-friendly jurisdictionswhere crypto assets are banned outright, there is no need to token map as there is already a blanket ban in place. They have already decided that crypto assets offer no societal value, so there is no need for the balance that the Australian regulators are striving for.

Professor Barney Tan is the Head of School and a Professor at the School of Information Systems and Technology Management (ISTM) of UNSW Business School. Professor Tan is available to speak on the above topic, as well as regulations and innovations in Fintech and can be reached on barney.tan@unsw.edu.au for media comment.

Reach out to k.bettes@unsw.edu.au for further media comment from other academics of the School of Information Systems and Technology Management (ISTM).

Read the original:
What will Australian regulation mean for cryptocurrency? - UNSW Newsroom

Bitcoin may be the biggest cryptocurrency by popularity and market cap, but are there better alternatives that can produce even bigger gains?

Some of the best ICOs have provided massive returns for investors, and IBAT is getting ready for its listing on PancakeSwap (its IDO).

The global lockdowns led to financial market turmoil, but that period proved to be the best time for investing. Bitcoin (BTC) dropped to just over $4,000. That shook the market, but investors who bought BTC at the time went on an epic rally in the next 18 months.

Bitcoin reached its all-time high (ATH) of $69,000 in November 2021. A massive market crash followed, with BTC losing 73% of its value. The worst part is that many investors expect further downside. The market is very bearish at the moment, and Bitcoin seems to be out of steam to make a new ATH.

Bitcoin has slightly recovered since its crash, but it seems that its latest price action is a bounce from the ATH set in 2018. So the market expects a short-term rally before Bitcoin turns on itself and continues a multi-year bear market.

If Bitcoin isnt due for a massive rally, then which coin could be?

The crypto market has revealed that a tokens biggest volatility usually happens during major listings and catalyst events. Battle Infinity will have both of those soon. The first big news is that Battle Infinitys token, IBAT, will be listed on PancakeSwap on 17 August 2022 at 16:00 UTC.

The other major news is that big celebrities are joining this crypto game. Battle Infinity founder Sureshi Joshi stated, I can confirm today that Irfan Pathan, the international cricketer, and Bollywood actress and former Miss Universe turned actress Urvashi Rautela, will be joining me at our Battle Infinity launch party in Delhi on Wednesday.

So whats the big fuss about this NFT-based fantasy sports game?

Battle Infinity enables players to earn rewards on six platforms. Players compete in the IBAT Premier League by building up teams while monetizing land. To make the game even more appealing, the developers enabled loyal players also to earn.

This crypto project transfers a portion of IBAT tokens earned from transaction fees to a global staking pool. Its from there that Battle Infinity coins get distributed to active players as a reward for their contribution to the ecosystem.

Although players can earn by playing Battle Infinity, they can also use Battle Swap to exchange their rewards for other currencies. The Battle Arena is where players meet and interact in real-time with their avatars.

The NFT Marketplace has tokenized assets and characters to attach a value to them. Players can use these NFTs to enter the IBAT Premier League and stylize their avatars with unique hairstyles and fashion accessories.

This NFT project is destined for big things, so investors can get in on the action by keeping up with the latest alerts via the Battle Infinity Telegram (admins will not DM your first).

Battle Infinitys presale sold out within 24 days of launch, but investors can get in on the Tamadoge (TAMA) presale. Its selling out fast, so its best for investors to get in immediately.

TAMA is also destined for an exchange listing. LBank tweeted that it will list TAMA, and a decentralized exchange, Uniswap, will also list it.

That means more trading volume for the coin. More information about Tamadoge can be found on the Tamadoge Telegram channel.

Battle Infinity and Tamadoge have combined metaverse and P2E elements to make themselves an attractive investment.

Visit Battle Infinity Now

Link:
Thinking to Buy Bitcoin? New Cryptocurrency Battle Infinity Lists on PancakeSwap and is Better Alternative - NewsBTC

At present, Bitcoin has the same number of users as the internet did in 1999. It paints a pretty clear picture of where we are in terms of the adoption of cryptocurrencies all across the world. While developed countries are surely ahead in terms of innovation, developing economies havent been left behind. India is one such nation where cryptocurrency adoption is rising at a phenomenal pace.

A report from Chainalysis said that India ranked no 2 in terms of crypto adoption among all nations globally. On the other hand, Finders report shows that India ranked no 1 on the same index. This is happening despite the governments attempt to discourage crypto investment and adoption by levying a 30% and 1% TDS on crypto transactions.

The most popular crypto owned by Indian citizens is Bitcoin, with 29.9% ownership as of April 2022. At no 2, we have Dogecoin, which got really popular this year after Elon Musk hyped it up and is owned by 23% Indians. Other popular cryptocurrencies like Ethereum, Solana, and Ripple are also on the top 10 list.

According to cryptogorilla.com, It is estimated that 27 million people, 2.0% of Indias total population, currently own cryptocurrency. Considering that India has a population of over 1.4 billion people, it seems to be a pretty small figure. However, things are just getting started, and if the government is a little supportive of regulations, India can lead the way in terms of the mass adoption of crypto.

But it wont be as easy as Indian banks, and especially the RBI has been pretty restrictive about crypto. Indias FM has also recently warned investors about the current investigations that crypto exchanges like WazirX and Vauld are facing over money laundering and KYC issues.

India is working on a CBDC (Central Bank Digital currency), which could change the countrys outlook on crypto. Plus, with time, as the crypto market gets bigger and more countries adopt a positive approach towards the sector, Indian authorities cannot simply just sit around.

The most important thing right now is a better tax regime that doesnt strangle crypto investors. For example, according to the current rules, investors cannot offset losses with profits, and the 30% tax is also a flat rate. This makes trading incredibly difficult, and profit margins get slimmer.

There is also a need for regulatory clarity that allows foreign exchanges and businesses to operate in India. Do you remember when Coinbase came to India and had to pause its operations due to UPI problems? Or when banks were sending notices to customers for transferring funds to crypto exchanges? These things cannot happen anymore, or crypto adoption will be difficult.

India does have the potential to lead crypto adoption globally, with 50% of its population below the age of 25. Millennials have always been more accepting of new technologies, and the same is the case for crypto.

See the article here:
Cryptocurrency adoption is rising in India - Techstory

By Johnny Lyu

As the world increasingly moves towards a digital future, more and more businesses are beginning to adopt cryptocurrency as a form of payment. However, with the rise in popularity of digital currencies comes an increase in the number of scams and frauds being perpetrated against unsuspecting users. In order to protect themselves and their customers, businesses must implement effective know-your-customer (KYC) policies and procedures.

This article will try to bring the concept of KYC verification closer to you, as well as explain the benefits of KYC compliance as a whole. Lets get into it!

What is KYC?

KYC process is the process of verifying the identity of a customer or client. This can be done through the use of government-issued identification documents, such as a passport or drivers license, or by other means, such as utility bills or bank statements. The goal of KYC is to ensure that the customer or client is who they say they are, and to prevent money laundering and other illicit activities.

What Are the Benefits of KYC?

There are many benefits to crypto firms implementing KYC policies and procedures, both for businesses and customers or clients.

From a business perspective, implementing KYC processes can help crypto companies by protecting them against fraud and money laundering. This is especially important in crypto, where scams are not that rare. It can also help businesses to build trust with their customers or clients, as it shows that the business is taking steps to verify the identity of those who are using its services.

From a customer or client perspective, know-your-customer can help to protect their crypto assets against fraud. It can also make it easier for customers or clients to do business with a company, as they will not need to provide their personal information each time they interact with the company.

What Are the Risks of Not Implementing KYC?

There are several risks associated with not implementing KYC regulations in the crypto world.

Financial Crime Risk

First, crypto firms that do not verify the identity of their customers or clients run the risk of being used for money laundering or other illegal activities. This could lead to criminal charges being brought against the business, as well as reputational damage.

Scams and Fraud Risk

Second, businesses that do not verify the identity of their customers or clients run the risk of being taken advantage of by scammers and fraudsters. This could lead to financial losses for the business, as well as damage to its reputation.

Failing to Establish Trust

Third, businesses that do not verify the identity of their customers or clients may have difficulty building trust with their customers or clients. This could lead to a loss of business, as customers or clients may take their business elsewhere.

Overall, it is important for businesses to carefully consider the risks and benefits of KYC before deciding whether or not to implement such policies and procedures.

Reduced Functionality and Lower Limits

Most crypto firms entice users into completing the KYC procedure by enabling additional functionalities or increasing withdrawal limits once the procedure is complete. Therefore, if the KYC isnt complete, users may suffer from certain platform-induced limitations.

What Does KYC Mean for Crypto Exchanges?

Cryptocurrency exchanges are businesses that allow customers to buy and sell cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin. In order to comply with anti-money laundering (AML) and countering-the-financing-of-terrorism (CFT) regulations, crypto exchanges must implement know-your-customer (KYC) policies and procedures.

KYC requirements do not apply to decentralized exchanges (DEXs), which organize trades through smart contracts instead of a central trading desk. Therefore, users are not required to disclose their identities. However, centralized exchanges are regarded as financial institutions, and, therefore, must comply with financial regulations if they want to conduct business in certain countries.

You Shouldnt be Afraid of KYC

Even though it may seem like a hassle, you shouldnt be afraid of KYC. It is important to remember that KYC is designed to protect you, as well as the businesses that you do business with especially when you are dealing with an industry as vulnerable as crypto. When implemented properly, KYC can help to prevent fraud and money laundering, and can also make it easier for you to do business with a company.

If you are asked to provide your personal information to a company, you should make sure that the company is legitimate and that you feel comfortable providing your information. You should also make sure that you understand how the company will use your information, and what steps they will take to protect it.

Why Does Crypto Need KYC?

Cryptocurrency exchanges, as well as other non-decentralized entities in the space, are subject to the similar AML and CFT regulations as traditional financial institutions. As such, they must take steps to prevent their services from being used for money laundering or other illegal activities.

One of the most effective ways to do this is to implement proper regulatory compliance. By collecting certain identifying information from their customers, exchanges can screen out those who may be attempting to use the exchange for illegal purposes.

In addition, KYC can help to build trust between an exchange and its customers. By showing that it is taking steps to verify the identity of its users, an exchange can create a sense of safety and security that may attract new customers.

Final Word

Overall, KYC is an important tool that can help to create a safer and more secure business environment. However, businesses must carefully consider the risks and benefits of KYC before deciding whether or not to implement such policies and procedures.

The author is CEO, KuCoin exchange

Also Read: Japan might ease tax burdens on cryptocurrency startups in 2023

Follow us onTwitter,Facebook,LinkedIn

Visit link:
What is the importance of KYC in cryptocurrency user information security - The Financial Express

Decisions made by companies during effects of bear markets are expected to play a role in determination of the cryptocurrencys ecosystem. Fanny Philip, COO, Sato Technologies, a Canadina Bitcoin (BTC) mining firm, has spoken about the anecdotes necessary to sustain the bearish loom as the market prepares for the next bull run, as reported by Cointelegraph.

According to Cointelegraph, during the Surfin Bitcoin 2022 event in France, Philip emphasised on the impact of bear markets on business, and for mining companies to build and understand. Sato is a digital assets mining company, publicly traded on the Toronto stock exchange (TSXV) since September, 2021, and mines both Bitcoin (BTC) and Ether (ETH). Philip further told about the initial challenges of arranging the industry, despite entering cryptocurrency ecosystem during a bull market. High demand for miners in the Quebec region, where the company originally had set-up its base, created a temporary stoppage on new mining facilities and unrest from the local residents. When asked about the effects of bear market, Philip had a positive outlook towards it, while commenting on the price relationship between BTC, mining and purchasing mining equipment.

Moreover, Cointelegraph noted on Sato Technolgies new agreement Foundry Digital LLC (Foundry). The two companies signed a deal to make it possible for Sato to host an additional 4,300 miners at center one in Quebec, and the programme will reportedly be supported by renewable energy. Whats going to happen, nobody really knows. Thats why we decided to diversify. Mining is our core business but we develop a lot of applications on top of the Lightning Network, Philip said, on diversifying and learning about options. At the concluding part, Philip highlighted that the Merge could be seen as a way to look at the possibilities to build and earn within the Ethereum ecosystem. Its all part of the evolution, Philip mentioned.

(With insights from Cointelegraph)

Also Read: Binance halts access to one million dollars cryptocurrency account for a Tezos contributor

Follow us onTwitter,Facebook,LinkedIn

More:
Sato Technologies Fanny Philip on the impact of bear market over cryptocurrency businesses - The Financial Express

Russias cryptocurrency adoption has not beein going at a fast pace due to maximum amount of Russians never buying cryptocurrency, on the basis of a survey, according to Cointelegraph. Switzerland-based cryptocurrency wallet provider Tangem conducted a survey to make analysis on Russian cryptocurrency investors, as said by local news agency Kommersant.

As stated by Cointelegraph, around 72% of 2,100 respondents, based on the survey, claimed about never buying cryptocurrencies such as Bitcoin (BTC), which has left Russian cryptocurrency miners in a minority. Around nine percent of survey participants denoted that they carried a negative outlook towards cryptocurrencies, 45% of the respondents said about carrying a positive outlook towards digital currencies and 46% remained neutral. The survey stated that 44% of respondents choose to invest in cryptocurrencies because of its ability to make earnings. On the other hand, 68% of respondents gave the reason for not investing in cryptocurrencies due to its absence of physical backing.

On the basis of information by Cointelegraph, despite maximum amount of Russians being introduced to cryptocurrency investments, many are considering it as a potential investment. While 31% of respondents indicated about buying cryptocurrency in the upcoming six months, 40% claimed about remaining uncertain regarding the investment scenario. Around 30% of respondents didnt give any indication about buying cryptocurrencies. Tangems data mentioned that close to six percent of respondents were found to have good knowledge about cryptocurrencies, and 80% were only familiar with the term.

Moreover, Cointelegraph noted that estimations by Sergey Mendeleev, CEO, InDeFi stated that number of active and passive cryptocurrency Russian users currently stand at less than one precent out of the total 144.4 million population. Certain experts believe that Russians have been switching to cryptocurrency due to foreign currency restrictions by Bank of Russia. Earlier this year, Kremlin reported that Russians owned close to $200 billion worth of cryptocurrency by late 2021.

(With insights from Cointelegraph)

Also Read: Google grows the ambit of Internet security; includes everyone from children to the LGBTQIA+ community

Follow us onTwitter,Facebook,LinkedIn

Read this article:
31 percent of Russians are expected to make cryptocurrency purchase in the next six months: Survey - The Financial Express