As the crypto industry is growing fast with a whole new set of possibilities. It’s difficult to keep up with it. Due to a lack of regulation and interest from companies or banks, the crypto industry has been facing a lot of problems. And there is a way to get rid of all them.
The problems that are faced by the crypto industry and how they can be solved are listed below:
1. The crypto exchange is getting hacked
The constant attacks by crypto exchange hacks made one thing clear: the exchanges are fallible. For some, it reveals that exchanges aren’t safe enough due to lack of institutional standards for security, and for others, it means not storing their coins in any exchange.
How funds are vanishing? In some cases, hackers took advantage of smart contracts or technical bugs, and sometimes, phishing techniques are used or the owner of the exchange misuses the money. The one thing that all of them have in common is a lack of security safeguards. How can we get rid of them? Firstly, users can choose more reliable exchanges, which privately hacks themselves to improve their security. Secondly, these businesses should adopt broad security standards until regulators finally do it for them. And third, for providing choices, more safe and expandable decentralized exchanges should be made.
2. The disparity between privacy and security
Bitcoin was introduced by a pseudonymous inventor, seen as an anonymous cryptocurrency. But since then, know-your-customer (KYC) has been integrated everywhere, Erik Voorhees, a staunch libertarian has succumbed to the pressures of regulators and the KYC institute on its crypto exchange form. If you are interested in Bitcoin trading visit Bitcon Era.
On the one hand, all this can be seen as a positive sign for crypto currencies. KYC and other forms of compliance will always be mandatory for institutions and regulatory bodies to get on board.
To form up the complete pictures of the crypto ecosystem, many crypto exchanges (like the crypto exchange in NZ) are working with blockchain analytics providers. Isn’t it a problem that the world can see all of your crypto transactions? Neutrino, a firm with access to both KYC and blockchain data, can be taken into consideration, whose founders sold data to authoritarian governments worldwide, as part of the hacking team.
Different ways in which cryptocurrencies can be used without disclosing personal detail of our financial records? Privacy coins such as Monero and Zcash makes it difficult for anyone to trace where your money has been spent. Remaining exchanges like Changelly and Local bitcoins can also be used, as they don’t require KYC.
3. The SEC’s crypto crackdown is fast
The commission has mostly focused on projects that apparently committed more evident wrongdoing such as outright fraud since SEC Chairman Jay Clayton announced that all ICOs accept Ethereum are unregistered securities offerings. However, last October, the commission sent several subpoenas related to ICO.
In negotiations with the SEC over its cryptocurrency, the Canadian based messaging application has spent $5 million, which was used to raise around $100 million in 2017 in an ICO by the company. Late last year, Kik was informed by SEC that enforcement action against the company over the unregistered ICO has been recommended. Some people think that SEC is unfairly punishing appropriate entrepreneurs perhaps some feel the SEC’s actions as a sign that regulators reorganize the crypto industry.
For example, to make a clear difference between securities and utility tokens and to solve this problem, the Wyoming state legislature has passed a number of bills. This approach can help the industry in progress. If this does not happen then ICO promoters will be paid more penalties, more coins will be removed from exchanges, and to rely on a coin to be registered security more unsuccessful attempts are expected.
Watch this space for updates in the Hacks category on Running Wolf’s Rant.