Connect with us

Blockchain

CEX.IO’s Head of Financial Crimes: Traditional Security Measures Not Good Enough For Crypto

Published

on

BeinCrypto spoke to Mark Taylor, Head of Financial Crime at CEX.IO, about KYC for crypto, how these protocols will change, and what global regulation could look like.

Cryptocurrency exchanges are no strangers to the confusing, difficult and laborious world of regulations.

As the crypto space gained a reputation for scams and criminal activity, legitimate exchanges needed to step up their protocols. These help ensure protection for customers and avoid implication by the exchange itself in possible illegal enterprises.

For the crypto market, however, different countries expect different protocols. This proves to be a nightmare for exchanges operating multi-nationally.

The big KYC

When it comes to financial institutions, one of the biggest and most well-known security features is Know Your Customer (KYC).

In the early days of cryptocurrency, centralized exchanges didn’t always include this feature. However, jurisdictions have become more aware of the crypto market.

As a result, these requirements have become standard for an exchange to provide its services without running into regulatory trouble.

According to Taylor, when it comes to crypto, these processes aren’t vastly different from those implemented by traditional financial institutions. This is because, like traditional finance, the protocols need to be agreed upon by the regulator.

“When considering such differences between traditional finance KYC and crypto KYC, discussion can take place about technology and cutting edge biometrics, but in reality, none of these are an answer to the KYC problem, unless regulators agree with industry as to their effectiveness and acceptance,” explains Taylor.

Interestingly, as e-money markets have emerged, Taylor explains that traditional institutions have kept up to their improved technological standards.

“Traditional financial services, of course, do not wish to be left behind and also appreciate the benefits of new technologies.”

“They now utilize the same technology and approach as new emerging markets like crypto and e-money / open banking,” he explains.

However, Taylor points out that these are only parts of a larger picture. Since KYC responds to criminals, updated regulations and technologies are just opportunities for criminals to figure out new ways to get around them.

“True effective and complete CDD processes as a whole package, watching what our customers do after passing the gatekeeper, understanding their activities and reasoning for that activity is more important than ever before.”

 “The use of old-styled control is about as effective as a chocolate tea-kettle”

For Taylor, adapting traditional security measures for crypto or any new industry is not perfect. As he explains, if they are the agreed-upon method, then it is necessary for regulatory standards. However, applying old-school techniques does mean that criminals already know how to get past them.

“So the adoption of these to any new industry and not just crypto is akin to presenting well-established criminals and launderers with an old, previously-solved puzzle. It is not new to them, and so they already know how to abuse and circumvent these controls,” he explains.

“Hacks and digital attacks are now part of the world we live in and the use of old-styled control is about as effective as a chocolate tea-kettle.”

However, despite possible failings, he acknowledges that these processes need to be followed.

Addressing the others locked out

The issue raised by some is that KYC tools don’t just keep criminals out. They also lock access to those who may need the services the most.

However, for refugees and stateless people, this process is impossible. This is because they don’t have access to the required government documents which are needed to prove who you are. As a result of their status, getting approved on a centralized crypto exchange is difficult or impossible.

For Taylor, the issue comes down to what actually needs to be solved to fix this problem. He argues that it becomes clearer where the resolution needs to come from when considering the tools’ purpose.

He references the purpose of KYC beyond verifying a person’s identity. Rather law enforcement uses KYC information to locate people if they need to.

“Those that are stateless or refugees that wish inclusion into these markets must satisfy the same criteria. If we carry out KYC or a new all-accepting method of KYC, is it enough to effectively locate these customers should the authorities wish to do so? This is the criteria that regulators and law enforcement will need to see answered before allowing KYC to be broad enough to accept this category of persons,” he explains.

As a result, he sees the work to end statelessness by entities such as the UNHCR, as key to the process of bringing those left out into the system.

“Let’s hope organizations such as UNHCR and partners are successful in their mission and just like crypto being regulated and welcomed, so can the stateless and refugees be welcomed into the modern financial system, as should be their modern-day right.’

For Taylor, there is great room for expansion of these security tools, beyond broadening who they apply for.

“KYC tools in the future are limited only by our imagination and technology.”

He acknowledges that it won’t be up to crypto exchanges but rather regulators globally. However, when considering where these tools will head, he envisions growth and improvements on the technological side.

Looking specifically at the current biometric and facial recognition technologies, he sees this expanding and improving going forward.

“For example, if we get a fingerprint scan, how can we then be 100% sure it belongs to this person? So we then come to the question of central databases, but also the larger philosophical question on freedoms and personal right to privacy.”

“Of course, biometric residence permits and identity documents do currently exist, and I do see them becoming more commonplace. In the far future, we may also have chemical, biological identification (DNA), but this also raises the same questions,” he explains.

Global KYC standards still up for debate

However, while Taylor may see technologies navigating improvements, he isn’t hopeful for global financial security regulations.

“Global standards on any form of regulation, KYC or otherwise, would always be welcomed if it could be agreed upon with industry and governments globally.”

“It is one of the most difficult parts of operating an international financial business – managing the differing rules around the world. If taken at a high level, most rules currently in place for governments all try to do the same things. Reduce customer exposure, protect customers, be effective and efficient, and reduce the likelihood of abuse by bad actors, money launderers, and terrorists,” he says.

“However, who would have thought the same end goal could be reached in so many different ways! So if we could agree as a globe on KYC standards and what is acceptable and what is not, it would be a game-changer for regulated entities. This would reduce costs and increase efficiency and customer service.”

However, Taylor doesn’t see this happening.

“Call me a cynic, but I really cannot see the world’s governments coming together and establishing an agreed-upon framework that is the same across the globe or even similar enough to allow companies to have just one approach and process.”

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

Share Article

After working in news and lifestyle journalism, Leila decided to bring her interest in cryptocurrencies and blockchain to her day job. She now runs the Features and Opinions desk at BeinCrypto which fits perfectly with her enthusiasm for crypto’s social and political impact.

Follow Author

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://beincrypto.com/mark-taylor-on-the-future-of-crypto-kyc-and-security/

Blockchain

Hedge Funds Plan to Allocate 7% of Portfolios in Cryptocurrencies by 2026: FT Survey

A survey with 100 hedge funds concluded that CFOs plan to allocate over 7% of their portfolios in bitcoin and other cryptocurrencies by 2026.

Published

on

Large hedge funds expect to increase their cryptocurrency holdings to 7% in five years, a recent survey conducted by the Financial Times concluded. This comes after the increased involvement from prominent names like Stan Druckenmiller, Paul Tudor Jones III, SkyBridge Capital, and more.

Hedge Funds to Increase Crypto Holdings

It’s safe to say that 2020 was Bitcoin’s breakout year in terms of institutional adoption. The COVID-19 pandemic and the financial catastrophe it caused ultimately highlighted BTC’s merits over most traditional investment tools, which attracted corporations and institutions that steered clear of it up until that moment.

According to a survey by the FT, this will only increase in the next five years. Following a survey among officers from over 100 global hedge funds, the paper concluded that “executives expect to hold an average of 7.2 percent of their assets in cryptocurrencies in five years’ time.”

Although the current holding numbers are unknown, the publication concluded that such an allocation would “represent a large increase” in funds put in various digital assets.

Per David Miller, executive director at Quilter Cheviot Investment Management, hedge funds are “well aware not only of the risks but also the long-term potential” of bitcoin and other cryptocurrencies.


ADVERTISEMENT

However, analysts from the consulting company Oliver Wyman argued that digital asset purchases still “remain limited to clients that have a high-risk tolerance, and, even then, investments are typically a low proportion of investable assets.”

Who Bought In?

While some institutions contemplate on whether or not they should buy or increase their crypto holdings now, others have already done so.

Perhaps it all started with the billionaire hedge fund manager – Paul Tudor Jones III. He was among the first to openly praise BTC after the COVID-19 pandemic because he considered it a proper safe haven instrument against the rising inflation in the US.

He allocated up to 3% of his portfolio in BTC at the time but said he wants to have 5% in the primary cryptocurrency just recently. Stan Druckenmiller, another legend of the legacy financial markets, echoed his words shortly after.

Anthony Scaramucci, the founder and CEO of SkyBridge Capital, was next. He and his organization came on board in late 2020 through a Bitcoin Fund with an initial multi-million dollar investment.

It’s also worth highlighting that US banks, some of the biggest critiques until recently, have also expressed interest in entering the space. Some, like BNY Mellon, have revealed plans to launch cryptocurrency custodians. Others, like Morgan Stanley, will enable their institutional clients to receive BTC exposure through several funds.

Goldman Sachs filed for a Bitcoin ETF, while JPMorgan is reportedly developing an actively managed BTC fund.

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/hedge-funds-plan-to-allocate-7-of-portfolios-in-cryptocurrencies-by-2026-ft-survey/

Continue Reading

Blockchain

Hedge Funds Plan to Allocate 7% of Portfolios in Cryptocurrencies by 2026: FT Survey

A survey with 100 hedge funds concluded that CFOs plan to allocate over 7% of their portfolios in bitcoin and other cryptocurrencies by 2026.

Published

on

Large hedge funds expect to increase their cryptocurrency holdings to 7% in five years, a recent survey conducted by the Financial Times concluded. This comes after the increased involvement from prominent names like Stan Druckenmiller, Paul Tudor Jones III, SkyBridge Capital, and more.

Hedge Funds to Increase Crypto Holdings

It’s safe to say that 2020 was Bitcoin’s breakout year in terms of institutional adoption. The COVID-19 pandemic and the financial catastrophe it caused ultimately highlighted BTC’s merits over most traditional investment tools, which attracted corporations and institutions that steered clear of it up until that moment.

According to a survey by the FT, this will only increase in the next five years. Following a survey among officers from over 100 global hedge funds, the paper concluded that “executives expect to hold an average of 7.2 percent of their assets in cryptocurrencies in five years’ time.”

Although the current holding numbers are unknown, the publication concluded that such an allocation would “represent a large increase” in funds put in various digital assets.

Per David Miller, executive director at Quilter Cheviot Investment Management, hedge funds are “well aware not only of the risks but also the long-term potential” of bitcoin and other cryptocurrencies.


ADVERTISEMENT

However, analysts from the consulting company Oliver Wyman argued that digital asset purchases still “remain limited to clients that have a high-risk tolerance, and, even then, investments are typically a low proportion of investable assets.”

Who Bought In?

While some institutions contemplate on whether or not they should buy or increase their crypto holdings now, others have already done so.

Perhaps it all started with the billionaire hedge fund manager – Paul Tudor Jones III. He was among the first to openly praise BTC after the COVID-19 pandemic because he considered it a proper safe haven instrument against the rising inflation in the US.

He allocated up to 3% of his portfolio in BTC at the time but said he wants to have 5% in the primary cryptocurrency just recently. Stan Druckenmiller, another legend of the legacy financial markets, echoed his words shortly after.

Anthony Scaramucci, the founder and CEO of SkyBridge Capital, was next. He and his organization came on board in late 2020 through a Bitcoin Fund with an initial multi-million dollar investment.

It’s also worth highlighting that US banks, some of the biggest critiques until recently, have also expressed interest in entering the space. Some, like BNY Mellon, have revealed plans to launch cryptocurrency custodians. Others, like Morgan Stanley, will enable their institutional clients to receive BTC exposure through several funds.

Goldman Sachs filed for a Bitcoin ETF, while JPMorgan is reportedly developing an actively managed BTC fund.

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/hedge-funds-plan-to-allocate-7-of-portfolios-in-cryptocurrencies-by-2026-ft-survey/

Continue Reading

Blockchain

Solanax Launches Private Token Sale, IEO Starts on June 28

[PRESS RELEASE – Please Read Disclaimer] Solanax, a Solana-based DeFi protocol is currently conducting a private token sale that ends on the 25th of June. They are also aiming to proceed with an initial exchange offering (IEO) that is set to commence on the 28th of June. Solanax went live recently with their automated market […]

Published

on

[PRESS RELEASE – Please Read Disclaimer]

Solanax, a Solana-based DeFi protocol is currently conducting a private token sale that ends on the 25th of June. They are also aiming to proceed with an initial exchange offering (IEO) that is set to commence on the 28th of June.

Solanax went live recently with their automated market maker (AMM) and decentralized exchange (DEX) platform on the Solana Blockchain. Regarding the launch, the team said, “SOLANAX are attempting to eliminate centralized intermediaries and pave the way for full decentralization, censorship-resistant, and safe trading within the Solana ecosystem and beyond”

Introducing Solanax

Solanax is a decentralized exchange built on top of the Solana blockchain that leverages the exciting features of the fastest-growing blockchain. The project resolves a long-standing problem with scalability and transaction throughput in DEXes, driving the adoption of DeFi products and services.

Solanax also allows peers on the Solana blockchain and beyond to trade directly between themselves without intermediaries through self-custody or non-custodial wallets.

SOLD Token Distribution

Solanax will distribute at least 20 million $SOLD tokens before getting listed on a centralized exchange. The project currently offers crypto enthusiasts and investors a chance to get a hold of their native token through their private sale which ends on the 28th of June. In this sale, Solanax is offering 10 million tokens at $0.1 per token, considering a three-month vesting period, or $0.15 per token without a vesting period. The private sale aims to raise at least $1 million.

In the subsequent IEO that launches on June 28th, another 10 million SOLD tokens will be distributed in multiple rounds with a target of at least $2 million from the offering. The private sale and IEO will distribute a combined 25% of the total tokens.

Solanax Features

Solanax is unlike any other DEX in the crypto space. The protocol’s versatility powered by Solana builds a trader-first DEX design, where trading features are optimized for investors to buy, sell and transfer crypto assets seamlessly. Solanax is the ultimate CEX-killer, offering at-par if not better features that traders look out for in a crypto exchange.

Listed below are some of the notable features/experiences that set Solanax apart:

  • Hassle-free trading with high liquidity across Solanax, as investors are incentivized to provide liquidity to low-volume assets while maintaining high liquidity in popular assets.
  • Rapid and seamless transaction settlement powered by Solana’s high transaction throughput.
  • Very low transaction fees for swapping SPL tokens.
  • Open-source Liq and DeFi protocol. There are several ways people will be able to earn rewards.
  • Plans for cross-blockchain Bridge implementation via Wormhole / Binance Bridge / Solanax Token Converter
  • Runs on the more powerful and highly scalable Solana blockchain.
  • Fully decentralized, censorship-resistant with a secure hybrid consensus model

Apart from the aforementioned features, the platform will offer unmatched flexibility for traders to access digital assets on the Ethereum blockchain. In this ecosystem, developers can convert ERC-20 tokens into SPL tokens compatible with the Solana ecosystem, then deploy the tokens to decentralized apps (dApps) like Solanax.

The team has reserved 40% of the 80 million total supply of $SOLD for platform incentives. These include staking and liquidity mining rewards. Solanax DEX also has a farming platform where traders can stake LP tokens and earn farming rewards. The aim is to increase use cases and incentives on the platform to make this ecosystem a community-based decentralized exchange. To be a part of the community while the project is in the early stages, be a part of the IEO and the private sale using the information given below.

Contact

Website

Private Token Sale: email – sales AT solanax.org

Twitter

Telegram

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/solanax-launches-private-token-sale-ieo-starts-on-june-28/

Continue Reading

Blockchain

Solanax Launches Private Token Sale, IEO Starts on June 28

[PRESS RELEASE – Please Read Disclaimer] Solanax, a Solana-based DeFi protocol is currently conducting a private token sale that ends on the 25th of June. They are also aiming to proceed with an initial exchange offering (IEO) that is set to commence on the 28th of June. Solanax went live recently with their automated market […]

Published

on

[PRESS RELEASE – Please Read Disclaimer]

Solanax, a Solana-based DeFi protocol is currently conducting a private token sale that ends on the 25th of June. They are also aiming to proceed with an initial exchange offering (IEO) that is set to commence on the 28th of June.

Solanax went live recently with their automated market maker (AMM) and decentralized exchange (DEX) platform on the Solana Blockchain. Regarding the launch, the team said, “SOLANAX are attempting to eliminate centralized intermediaries and pave the way for full decentralization, censorship-resistant, and safe trading within the Solana ecosystem and beyond”

Introducing Solanax

Solanax is a decentralized exchange built on top of the Solana blockchain that leverages the exciting features of the fastest-growing blockchain. The project resolves a long-standing problem with scalability and transaction throughput in DEXes, driving the adoption of DeFi products and services.

Solanax also allows peers on the Solana blockchain and beyond to trade directly between themselves without intermediaries through self-custody or non-custodial wallets.

SOLD Token Distribution

Solanax will distribute at least 20 million $SOLD tokens before getting listed on a centralized exchange. The project currently offers crypto enthusiasts and investors a chance to get a hold of their native token through their private sale which ends on the 28th of June. In this sale, Solanax is offering 10 million tokens at $0.1 per token, considering a three-month vesting period, or $0.15 per token without a vesting period. The private sale aims to raise at least $1 million.

In the subsequent IEO that launches on June 28th, another 10 million SOLD tokens will be distributed in multiple rounds with a target of at least $2 million from the offering. The private sale and IEO will distribute a combined 25% of the total tokens.

Solanax Features

Solanax is unlike any other DEX in the crypto space. The protocol’s versatility powered by Solana builds a trader-first DEX design, where trading features are optimized for investors to buy, sell and transfer crypto assets seamlessly. Solanax is the ultimate CEX-killer, offering at-par if not better features that traders look out for in a crypto exchange.

Listed below are some of the notable features/experiences that set Solanax apart:

  • Hassle-free trading with high liquidity across Solanax, as investors are incentivized to provide liquidity to low-volume assets while maintaining high liquidity in popular assets.
  • Rapid and seamless transaction settlement powered by Solana’s high transaction throughput.
  • Very low transaction fees for swapping SPL tokens.
  • Open-source Liq and DeFi protocol. There are several ways people will be able to earn rewards.
  • Plans for cross-blockchain Bridge implementation via Wormhole / Binance Bridge / Solanax Token Converter
  • Runs on the more powerful and highly scalable Solana blockchain.
  • Fully decentralized, censorship-resistant with a secure hybrid consensus model

Apart from the aforementioned features, the platform will offer unmatched flexibility for traders to access digital assets on the Ethereum blockchain. In this ecosystem, developers can convert ERC-20 tokens into SPL tokens compatible with the Solana ecosystem, then deploy the tokens to decentralized apps (dApps) like Solanax.

The team has reserved 40% of the 80 million total supply of $SOLD for platform incentives. These include staking and liquidity mining rewards. Solanax DEX also has a farming platform where traders can stake LP tokens and earn farming rewards. The aim is to increase use cases and incentives on the platform to make this ecosystem a community-based decentralized exchange. To be a part of the community while the project is in the early stages, be a part of the IEO and the private sale using the information given below.

Contact

Website

Private Token Sale: email – sales AT solanax.org

Twitter

Telegram

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/solanax-launches-private-token-sale-ieo-starts-on-june-28/

Continue Reading
AR/VR3 mins ago

Blaston Crackdown Update Adds Single-Player Campaign This Month

Esports18 mins ago

How to bunny hop in VALORANT

Blockchain33 mins ago

Hedge Funds Plan to Allocate 7% of Portfolios in Cryptocurrencies by 2026: FT Survey

Blockchain33 mins ago

Hedge Funds Plan to Allocate 7% of Portfolios in Cryptocurrencies by 2026: FT Survey

Blockchain33 mins ago

Solanax Launches Private Token Sale, IEO Starts on June 28

Blockchain33 mins ago

Solanax Launches Private Token Sale, IEO Starts on June 28

Blockchain36 mins ago

DeFi Yield Farming is Brilliant Says Legendary Investor Mark Cuban

Blockchain37 mins ago

Bitcoin price analysis: Bitcoin still trades around $40,000, reversal incoming? 

Blockchain37 mins ago

Bitcoin price analysis: Bitcoin still trades around $40,000, reversal incoming? 

Blockchain37 mins ago

Bware Labs Launches MVP of High Performance Decentralized Node Network

Blockchain37 mins ago

MicroStrategy Could Buy More Bitcoin With $1 Billion Stock Offering

Blockchain38 mins ago

Hedge Funds Plan to Allocate 7% of Portfolios in Cryptocurrencies by 2026: FT Survey

Blockchain38 mins ago

Solanax Launches Private Token Sale, IEO Starts on June 28

Covid1941 mins ago

This Man Is Honoring COVID Victims By Telling Their Stories, One Obituary At A Time

Blockchain45 mins ago

After Debt Security and Cash, MicroStrategy set to Sell $1B in Stocks for BTC Purchase

Blockchain45 mins ago

After Debt Security and Cash, MicroStrategy set to Sell $1B in Stocks for BTC Purchase

Blockchain45 mins ago

A survey reveals investors are still bullish on Bitcoin despite the recent market drop.

Blockchain45 mins ago

A survey reveals investors are still bullish on Bitcoin despite the recent market drop.

Aviation46 mins ago

Emirates Reports $5.5 Billion Loss Amid Ongoing Pandemic

CNBC1 hour ago

Jaguar Land Rover is developing a hydrogen-powered vehicle and plans to test it out this year

CNBC1 hour ago

Jaguar Land Rover is developing a hydrogen-powered vehicle and plans to test it out this year

Blockchain1 hour ago

Thailand Bans Meme Coins and NFT Trading in New Regulation

AR/VR1 hour ago

All I Want: The stories behind Portuguese female artists

Blockchain1 hour ago

Bitcoin price bottom is in, says Fidelity exec as crypto market exits ‘extreme fear’

HRTech1 hour ago

Who is a ‘minimum guy’? Why does an organisation need him?

HRTech1 hour ago

Who is a ‘minimum guy’? Why does an organisation need him?

Blockchain1 hour ago

Cryptocurrency Market Drops 4% in 7 Days as Bitcoin Surges 8%

Start Ups1 hour ago

Tallinn-based Change, a cryptocurrency investing platform for retail investors, closes €3.7 million crowdfund

Blockchain1 hour ago

Ripple price analysis: Ripple rejects $0.90 resistance, prepares to move lower?

Blockchain1 hour ago

Bitcoin investors more bullish than ever despite 50% price crash: survey

Trending