Cryptocurrency Industry is in its Infancy for all Reasons – New Age Financial FrameworkMay 24, 2019
Pavel Matveev, Co-founder, and Executive at Wirex, stated, “We have entered a new age in which conventional regulated financial frameworks and the new token economy must coexist.”
The cryptocurrency industry is in its infancy for all reasons. There have been massive boom and bust cycles for the cryptocurrencies over the past few years.
With the improvement in technology, industry-specific solutions are sought to maintain the functionality and to appropriate the existing solutions. The cryptocurrency industry is, however, known for its failure. The problems faced by the exchanges are increasing due to issues with a damaged reputation.
There are several problems other than the hacks in the cryptocurrency industry. When the technology backing the exchange being shoddy, customers eventually lose trust. Despite the exchange running flawlessly, the damage already has been done. Sometimes the fees charged is something that the market cannot bear. This ultimately will leave the crypto investors feeling stung.
The market needs technical control, stability, and security. If the cryptocurrency industry should move forward in the mass adoption process, these solutions are necessary. Whether the investors look at the cryptocurrency as an asset or a currency, the processors need to come up with crypto specific solutions.
The market has been continuing to mature. Among the chaos, there are a few points which are beginning to gain improvement among the traders. Several crypto-specific trading platforms are meant to streamline the trading process at every level.
Brazilian Police have arrested nearly ten people who have been suspected of having operated a cryptocurrency pyramid scheme, which is worth 850 million reals.
A team was dedicated under the name and style called “Operation Egypto.” The team has focused on identifying unsanctioned financial schemes. The tax agency from Brazil joined the police in the process of cracking down the numbers behind the deal. The fraudsters have gathered funds from nearly 55,000 investors.
Correido Do Povo quoted, “The problem with this company is that it was acting without authorization.”
The scheme has formulated a classic financial pyramid. The confiscated assets showed that the system could not service withdrawals of all members at once. They have been using the investment to pay for luxury items like cars and precious stones. Cryptocurrency usage is not illegal in Brazil. However, the reason behind why the police took action was that the business did not exhibit legality of the company.
The support for the cryptocurrency is the globally distributed digital ledger, which provides for rapidly identifying fraud and other criminal activity due to its immutable nature. Thus, providing for the security of data, money, innovation, and choice to the customers.