War times are upon us. Cryptocurrencies have played a very important role in the mobilization of funds without intermediaries. Regulating this new financial frontier is paramount, says the CEO of coin pass, Jeff Hancock.
Recent global developments have unlocked a new era for cryptocurrencies. Rising geopolitical tensions have put an already outdated financial system to the test. This, in turn, presents unique opportunities for cryptocurrencies to show their true value.
War: crypto utility
Looking at the conflict in Ukraine, we have already seen donations worth more than 50 million through cryptocurrencies and digital wallets, an unprecedented event. These crypto donations will support humanitarian aid to the millions of people affected by the war. And then they can be used by Ukraine to obtain liquidity or to purchase supplies.
Thanks to crypto platforms, anyone around the world can contribute to these efforts without intermediaries. In this conflict with two very different sides, we see that cryptocurrencies work as they should: a transparent, public and fast way to move capital to where it is needed. Here, crypto clearly demonstrates its positive side.
These developments in the crypto space are taking the conversation to a new level: regulations. Although contentious to many in crypto, the regulations could be a boon to the industry.
War, Ukraine and Crypto
It has recently been revealed that Ukraine is in talks with Stellar to develop its own central bank digital currency (CBDC). Last week, the country’s president signed a bill that will pave the way for establishing a legal framework for digital assets.
Ukraine is not alone; several other countries have been approaching the world of cryptocurrencies. The regulations represent an important step in bridging the gap between traditional and innovative finance. In this regard, it is important for regulators to be open-minded and forward-thinking while accepting the value that cryptocurrencies bring to the economy, society in general, people and businesses, particularly small ones. and medium-sized companies.
Whether you are a physical store or a law firm, you should consider cryptocurrencies as protection against fiat money. Given how globalized our economy is, this conflict is already having an impact on various industries, from food to fuel.
Regulation is key
Accepting cryptocurrencies as legitimate currency is a way for companies to protect their capital and expand their operations around the world. Crypto allows local businesses to go global. For cryptocurrencies to go mainstream, regulations are key.
Coinpass has worked closely with the UK Financial Conduct Authority (FCA) to create a platform that is not only easy to use, but also compliant with UK rules and regulations for trading and investing in cryptocurrencies. .
Financial and crypto education plays a key role in our marketing and outreach strategy, which we believe is key to bringing new investors, commercial institutions, and pension funds into the growing crypto economy.
Since Coinpass’s inception in 2018, the credibility, compliance, and security has always been the main driver of the success of the platform. Coinpass is now one of the few UK-based FCA-approved crypto trading platforms to have received a full crypto asset license under AML5D.
Since regulations help the industry gain visibility, credibility, and legitimacy, it is the industry’s responsibility to facilitate access and implement innovative technologies to improve the user experience, develop new investment opportunities, and limit exposure to potentially harmful fraud and tokens. of scam
One problem many UK businesses have faced with the current crypto asset registration regime is a lack of transparency.
You won’t need to be a crypto expert to trade crypto tokens, stablecoins, gain access to performance products and DeFiBut just like in any financial market, you will need to make informed and responsible decisions based on accurate research and due diligence on the assets you want to invest in.
Crypto: an image problem
Unfortunately, Crypto still has an image problem. And this image problem is the way that regulators, banks and politicians choose to regulate and curb this innovative market. The biggest concern for policymakers is Know Your Customer and Control Money Laundering to detect illicit transactions. Since the reach of cryptocurrencies is global, the UK regulator believes that the risks are much higher for retail investors at risk compared to other commercial markets such as forex trading or stocks.
What regulators, The banking and political opposition fail to understand that local UK regulators will fail to prevent foreign invaders from offering services, legitimate or otherwise, to UK investors.
UK regulators and the financial services industry should make innovation in finance a priority by putting crypto and blockchain innovation at the forefront of Fintech and Finance in the UK. The future of technology has already been decided, it is blockchain, we now need to find innovative ways to keep the UK ahead of the rest of the world at all costs.
About the Author
Before finding his calling in crypto, by jeff The fund was dedicated to cybersecurity in the casino industry and finance. He worked with the $100 billion Softbank Vision Fund in 2017 during the first cryptocurrency bull run. Jeff discovered the huge inefficiencies in the cryptocurrency market for UK users who wanted to enter and exit the market in GPB from UK banks. He founded coinpass.com in early 2018 to solve this problem. Jeff and his co-founders were committed to creating a safe, reliable, compliant and secure way to trade cryptocurrencies in the UK in a climate where cryptocurrencies were not accepted. Jeff’s vision for Coinpass is to blur the line between cryptocurrency and finance into a seamless digital layer.
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