Cryptocurrency environment does not stay still, and many new and exciting opportunities are open for people in this sphere. One of the popular venues for self-improvement and sharing experiences are crypto conferences. Recently, one of such conferences, Blockchain Economic Forum took place in Singapore on February 3-6.
CEX.IO among Active Forum Participants
Representatives of CEX.IO have also joined this event to share their experience in KYC/AML regulations for cryptocurrency sphere. As a self-regulated online crypto exchange, we pay much attention to this topic. So, it was a pleasure to share our insights with other industry participants. Vitaliy Kedyk, UK executive director at CEX.IO, actively participated in discussing the topic of crypto exchanges and KYC/AML principles for crypto businesses.
The Traditional Banking System Challenge for Crypto Exchanges
Together with the colleagues from other crypto exchanges, namely Korbit and Quoine, we have discussed the challenges that may be faced by our exchanges this year. And we found a common point. Currently, the major issue for crypto-exchanges seems to be the traditional banking system.
Bias of Traditional Institutions
The financial institutions are biased towards the crypto industry. Even strongly regulated exchanges face problems when working with fiat money. Some banks across the globe are now refusing to process payments that come from crypto exchanges. Regardless of the reasons, cooperation with traditional finance system is a painful issue.
The Space for Improvements
Still, the situation seems to be improving as cryptocurrencies win more trust. As noted by СЕО at one of the largest exchanges, “A year ago we had no banks. Now we have more than one. In a year, I believe it should be even better.” Some financial institutions are currently considering blockchain technologies for implementation. And we expect that the finance system will change its approach to cryptocurrencies soon.
Looking Forward to Establishing Regulations
To change approach towards cryptocurrencies, regulations will be a breaking point for the whole sphere. If regulations enter the scene in 2018, it will become a new push. After designing the regulatory principles, crypto businesses will gain more trust and draw more attention. At CEX.IO, we understand the value of governance for online exchanges. So, we are making everything possible to promote the need for regulations.
ICOs as a Stimulus for Industry Growth
During the Forum, we have also met representatives of several ICO projects. They are bringing innovation to the sphere, and we find it important to assist with the initiative. But, unfortunately, many of them currently do not understand how important regulation is. ICOs have substantially boosted the industry in 2017, but they also attracted many scammers. It underlines the need for strong regulation to keep trust towards the crypto. So, we expect 2018 to become a year for establishing rules of the game.
Events like this unite newcomers with the companies at the forefront of crypto and blockchain. It is important for sharing experience and understanding of what is happening. The industry is still extremely young and has no established rules. Due to this lack of regulations, many businesses are starting their ICOs and fundraising tens of millions without even understanding what to do with the money. Still, there are also many interesting projects with exciting approaches. They have a potential of moving the crypto forward.
Stay tuned for the industry. We believe there is much to be seen in the future.