Memo to crypto exchanges: KYC compliance can be a competitive advantage
More regulation is coming, and it will be costly, but compliance can also expand an exchange’s customer base. Crypto intelligence firm CipherTrace released a study on Oct. 1 reporting that more than half of the world’s cryptocurrency exchanges had deficient customer identification processes in place against money laundering. On the same day, the United States government announced that it had formally charged BitMex, a top virtual asset service provider, for “failing to implement required anti-money laundering procedures,” among other things.The two events, surely unrelated, nonetheless....
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Adopting more stringent Know Your Customer (KYC) checks can give crypto exchanges a competitive edge over those that meet minimal standards. Crypto is a fast-moving sector where new trends — decentralized finance and nonfungible tokens among them — accelerate in the blink of an eye. And as demand for digital assets grows, the need for regulation grows too. Anticipating those regulations and having the systems in place for future compliance can position crypto exchanges as industry leaders. Those that do the bare minimum risk falling behind as customers turn to more trusted....
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It's been a real good Week for Bitcoin! There's been much good news about bitcoin this week. China is back in the Bitcoin business. Forex trading instruments are being introduced and hearings by the New York State Legislature this week left this writer very pleased. So I thought I would provide some positive analysis about the competitive advantage Bitcoin enjoys over our larger competition. PayPal plus eBay plus Apple VS. Bitcoin. The combination of Apple, eBay and PayPal would be a solid threat to bitcoin growth. Fortunately they will be unlikely to get there acts together before bitcoin....