In The Event of Turmoil in the Crypto Space New Solutions Arise
The crypto space is currently in a state of rapid change and sideways price movement. As of the time of writing, the crypto market has lost nearly 50% of its capitalization since May, when it was worth an all time high of over 2.4 trillion USD.
Rapid price changes are nothing new in this environment. However, what is new are the regulatory changes and increasing scrutiny of crypto assets, which seemingly occur on a daily, if not hourly, basis all over the world.
News about changes and developments to technology also seems to be coming out everyday. The necessary amounts of transactions and security requirements are rising rapidly. Recent ransomware attacks against U.S. food processor JBS, and energy company Colonial Pipeline have even caused major supply chain issues and flash price hikes of common goods, due to the resulting food and fuel shortages. Such attacks are becoming increasingly common.
The Current Regulatory Landscape is Changing Rapidly
The current regulations surrounding crypto and their perceptions differ quite dramatically across the globe, depending on whose lens you look through. While some countries such as El Salvador are embracing Bitcoin as a fully legal tender, touting it as a great achievement, others, such as the US are approaching the issue more conservatively and taking their time. The SEC has reported that it will not tackle the regulation of cryptocurrency this year according to cryptocurrency news site Dailycoin.
The regulatory omission of crypto from the SEC’s expected policy list is a debatable decision, given the recent news of issues such as cryptocurrency mining’s energy consumption, increasing ransomware attacks, and more.
Other countries such as India and China are on the opposite end of the spectrum. China especially is pushing strongly against crypto, and has banned the mining of assets such as Bitcoin.
Holding what seems to be an indecisive middle ground, opinions on crypto in Europe are being widely discussed, and differ wildly from country to country. As a whole the European Union is exploring the concept of the digital euro and is rapidly moving forward with crypto adoption, with such countries as Switzerland paving the way.
The European Central Bank (ECB) has placated public fears over privacy issues with the digital euro, as ECB executives claimed the asset would hold superior privacy to that of stablecoins. At the present time, a great number of Central Banks are testing digital versions of their own currencies to compete with the major cryptocurrencies.
Technological and Security Concerns at the Forefront Amidst High Demand
Although the crypto market is on a bit of a downward trend price wise, in terms of adoption it’s experiencing unprecedented numbers thanks to entities such as Elon Musk and Kim Kardashian, who have brought the industry further into the spotlight and attracted massive attention. Crypto has generally garnered mainstream social media attention, with notable influencers using their social media accounts as marketing billboards.
All this does not even cover the renaissance which NFTs are currently experiencing. Many companies have recently been seeking out ways of incorporating their assets and values into a demanding ownership economy. Business organizations have thus tentatively ventured into unexplored territories looking to increase their revenue streams. With NFTs surging in popularity, media corporations, celebrities, and even car manufacturers are wading into decentralized markets by launching their own NFTs.
Unfortunately, alongside widespread adoption comes technological limitations and security vulnerabilities.
Currently the cryptocurrency market is plagued by hacks and shady practices. In response, companies are frantically trying to solve the challenging dilemma. The crypto space is ripe with opportunity, but requires multidisciplinary experience and highly sophisticated security systems. Thus in order to be able to offer crypto related products in a secure, regulatory compliant and efficient way, very few options exist.
Create It Yourself or Buy It out of the Box
Many companies have at least considered offering their clients crypto capabilities, or even of having their own crypto exchange, which seems ever so enticing when examining the earnings and evaluations posted by Coinbase and Binance. However to do so is to engage in a new, rapidly evolving industry, in which mistakes can cost users their life’s savings, and company owners millions.
Companies can therefore either meet consumer demand by creating their own payment gateways and crypto exchange solutions, or they can utilize a turnkey solution provider for a cryptocurrency exchange & banking services platform. Such a solution is offered by Swiss AMF AG; an advanced blockchain-based platform, multi-function which includes all bank accounts and offers limitless money transfers, as well as instant currency exchange.
There are pros and cons to each approach, however the crypto market is evolving at such a pace that not being a part of it may represent the greatest risk of all.
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Tech News, crypto, Cryptocurrency, Elon Musk, Kim KardashianRead More
OhNoCrypto
via https://www.ohnocrypto.com
, @KhareemSudlow
