London, England, 4 July 2021, ZEX PR – Crypto is no longer the crypto that came to the world back in 2009. Today the crypto fever has spared no part of the world. Be it rich or poor countries, youth or the elderly, everyone can see how the digital currency holds the potential to change everything for those who trade it the right way. It is not only the value or the price, in fact, but there is also a lot more to the boom. People have never seen something like crypto before which has no existence in physical form but its screen presence can work wonders. The level of anonymity and the increasing acceptance of the tokens make it more suitable. It has eradicated the need for the third party and the governmental interference is minimal.
I am Richard Walton, Broker from TrueNorthBit. I have seen crypto suffer and survive ever since I have entered the crypto world. I believe that the advantages of crypto are too much to be summarized however they are a potential threat to all the countries all around the globe.
This is why the currency has met mixed reactions. Many counties who were quick to adopt later learnt that it could rip apart their prevalent financial systems and hence measures need to be taken as soon as possible. Now we have entered an era of increased regulation and things do not seem to be going very smooth for crypto traders all over.
Crypto Scandals Trigger Reactions
I believe, it is not only the threat that is keeping nations on their toes, in fact, lately, but we have also seen numerous crypto scandals come out which have set the authorities on high alert. Just recently a very popular Chinese crypto platform, Huobi, has stopped its customers from trading derivatives. A British financial watchdog has also placed a ban on Binance Markets, on Sunday, from doing any sort of regulated business in the country.
South Africa has been reporting many large scale scandals and the country has reacted in the form of strict regulations which will be put in action soon. Two brothers from South Africa, Ameer and Raes Cajee have been involved in a huge fraud. The local regulatory authorities are suspecting that the crypto exchange that these two were running, Africrypt, was, in reality, nothing but a Ponzi Scheme.
The firm has been operational since 2019. It has been estimated that they have stolen money which was worth around 3.6 billion US dollars, on being caught they have said that ‘it was not us’ and that the exchange has been hacked. This issue has been highlighted particularly because if the funds are not recovered then this is going to be the greatest scam in crypto history.
It isn’t only these countries, in fact, superpowers like the United States have not been able to avoid crypto scams. According to Forbes, the United States alone has seen more than 82,00 crypto scams in the year 2020. In 2016, this figure was 340 and in 4 years it has gone up by 24,000%. The same year, Australia reported more than 9500 and the United Kingdom saw more than 8,800 frauds in the last year only. In the U.K. this figure went up from 2016’s 704. These increasing numbers of imposters are one of the major reasons why we are heading to a more regulated crypto use right now but this regulation is not being welcomed by the crypto industry.
Time to Act
After so many scandals that have surfaced in a small period, most countries are getting ready to screw on the industry.
All those willing to run a Crypto business in the U.K. will have to get themselves registered with governmental organizations such as Financial Conduct Authority and they must hold a license from an Authorized Payment Institution. It has to be ensured that all companies comply with the Anti Money Laundering Policies. Similarly, the Canadian authorities have made it mandatory that all the businesses are registered with the Financial Transactions and Reports Analysis Centre of Canada.
Singapore has brought forward an Act called the Payment Services Act, 2021 to make the process cleaner. Apart from obtaining a license, the public offerings will also be regulated now under an act that was passed in 2001. Indonesia is another country that has almost reached the destination of crypto regulation. Countries like the US, Brazil, and Pakistan are also on their path to regulate the use.
The Fate of Crypto Exchanges
All these attempts on National and International to get the crypto business curbed have made the Crypto business very uncomfortable. Reports say that 64 companies in the UK have withdrawn their applications to register with the UK authorities. It is eminent that most companies do not wish to work under harsh conditions. In my opinion, Crypto can be incredibly helpful and hence laws encouraging its decline should be revised.
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