90,000 People Not Excited About Doing Cryptocurrency Business with YouJuly 16, 2019
The congressional hearing related to Facebook’s Libra Project is expected to be something that will be more focused on the privacy failings and unresolved policy issues related to cryptocurrency.
Bitpoint Japan Co. stated that on Sunday they found an additional 250 million yen worth in digital currencies that have been stolen. This news comes a year after the loss of 3 billion in an earlier hack. This hack was noted in overseas exchanges, which we’re using the trading system, which was provided by Bitpoint Japan. All transactions and services were suspended on Friday after the identification of the hacking incident. The initial loss per the current estimate is at 3.02 billion yen.
The Bitpoint Japan cryptocurrency exchange provides for five cryptocurrencies like “bitcoin, bitcoin cash, ethereum, litecoin, and ripple.”
Cryptocurrency calls for stricter anti-money laundering and knows your customer regulations. The US Congress has been considering several bills to clarity legal issues which arise with the usage of digital currencies. This to prevent criminal activities. The anonymous nature of the cryptocurrency is particularly not attractive and seems to be favorable for scammers and fraudsters.
Adam Goldman, Bitbuy, Canadian Trading Platform Stated, that several criminals are beginning to get involved in the cryptocurrency as they will be using the cryptocurrency which is a non-traditional medium with no course for law enforcement, therefore, trading platforms along with regulators should do the needful to catch these actors.
It is important for exchanges to perform the critical KYC and AML measures, which will help them to favor only legitimate transactions. This will help them keep their customers safe from fraud in a situation where the cryptocurrency space is ever-expanding.
Alain Meier, CEO of Cognito, recollected “Coinbase had more customers signing up during the height of the crypto bubble in 2017 than what the Bank of America signed up in a year. When we are talking about signing up 11 million or so people in a short window of time, a false hit rate of 0.8 percent means a lot of slow, manual review. There are going to be about 90,000 people who are suddenly not excited about doing business with you.”
Dave McGibbon, stated, “Platforms that have high-risk transactions, and where the value exchange is the higher value (the sharing economy, for example), are more willing to insert something that has a little bit more friction, but ensures that people who are onboarding are actually [authenticated].”