Crypto Wallets – Innovative Words http://innovativewords.com/ Thu, 06 Jan 2022 07:15:26 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://innovativewords.com/wp-content/uploads/2021/04/default.png Crypto Wallets – Innovative Words http://innovativewords.com/ 32 32 Here’s how Singapore’s crypto regulations are monitoring investors https://innovativewords.com/heres-how-singapores-crypto-regulations-are-monitoring-investors/ Thu, 06 Jan 2022 06:03:15 +0000 https://innovativewords.com/heres-how-singapores-crypto-regulations-are-monitoring-investors/ Many early cryptocurrency users were drawn to the promise of anonymity. With Bitcoin, they could transact directly with each other without having to go through a bank. Such crypto transactions were designed to be the digital equivalent of exchanging cash, in the sense that they would be easy to facilitate and unattended. Users could store […]]]>

Many early cryptocurrency users were drawn to the promise of anonymity. With Bitcoin, they could transact directly with each other without having to go through a bank.

Such crypto transactions were designed to be the digital equivalent of exchanging cash, in the sense that they would be easy to facilitate and unattended. Users could store value in digital wallets without having to give out personal information.

Of course, this had its drawbacks. After all, banks and financial institutions perform Know-Your-Customer (KYC) checks for one reason: to prevent criminal activity such as money laundering.

Image Credit: Unsplash

In 2011, Bitcoin began to gain notoriety for its illegal uses. It was the currency of choice for users of Silk Road, a website now known as one of the most infamous marketplaces for illicit trade.

Silk Road has generated over 600,000 Bitcoins in revenue, worth over S $ 36 billion today, over a two-year period. It wasn’t until late 2013 that the Federal Bureau of Investigation (FBI) was able to shut down the website and arrest the owner, Ross Ulbricht.

The FBI could only find Ulbricht because he had used his real name on websites such as LinkedIn and Stack Overflow, where he spoke about the management of Silk Road. After chasing him, they seized the income he was holding in his own crypto wallet. However, others who shared the income have always remained in hiding.

To date, more than half of Silk Road’s total revenue has yet to be accounted for. But as technology expands to help regulate the crypto space, funds could still be clawed back. Authorities have started implementing new ways to identify blockchain users, even though their wallets come without a login.

Can users be identified through their crypto wallets?

By nature, a crypto wallet does not record any information that identifies its owner. What Is it that being recorded is every transaction made to and from a crypto wallet. This information is stored on the blockchain and can be viewed by anyone.

With millions of transactions made every day, it was nearly impossible to keep track of crypto leads.

However, tools have been developed over the years that can pull blockchain data together and visualize the flow of cryptocurrency from one wallet to another. Using such tools, one can identify a wallet that contains stolen or illicit crypto.

crypto wallet entry and exit
A visualization of the entries and exits of a crypto wallet on oxt.me / Screenshot of oxt.me

After that, it becomes a waiting game. As long as the crypto remains on a decentralized platform, authorities are unable to seize it or directly trace the owner.

However, if the owner tried to convert the crypto into fiat currency, it would likely reveal itself in the process. This is due to crypto regulations now implemented in countries like Singapore.

How do Singapore’s crypto regulations monitor transactions?

The primary way to buy cryptocurrency using fiat currency or convert cryptocurrency to fiat currency is through a centralized exchange (CEX).

In Singapore, this includes companies such as DBS Vickers and Independent Reserve. These approved exchanges are governed by the Monetary Authority of Singapore (MAS) Payment Services Act. Here are the points provided for by law with which the stock exchanges must comply:

a. customer due diligence by verifying their identity and activities;

b. monitoring customer transactions for signs of money laundering and terrorist financing;

vs. screening clients against the relevant United Nations international sanctions list; and

D. keep detailed records of client activities and have a process in place to report suspicious transactions to SAM.

As is evident, if one were to buy crypto in Singapore using SGD, one would have to give up his personal data. The same is true if they transferred the crypto from their decentralized wallet to a CEX.

Going back to the previous example: Authorities can monitor decentralized wallets containing illicit cryptos, and if the owner tries to transfer them to a CEX, then they can have them seized.

This is possible because CEX users don’t actually have crypto stored in individual wallets. All value remains stored with the CEX itself, with a record of what each user owns.

There are also regulations regarding what information must be shared between CEXs when a transaction is made.

What is the crypto travel rule?

In January 2020, MAS implemented the Crypto Travel Rule which was established by the Financial Action Task Force.

According to the rule, when the cryptocurrency is transferred between two CEXs, the information of the users involved in the transaction must be shared between the exchanges.

When the value of the transaction exceeds S $ 1,500, the sender’s address, IC number, and date of birth are all sent to the recipient CEX. For transactions below this threshold, only the name and ID of the wallet are shared.

Currently, there are no regulations preventing sending or receiving cryptocurrency from a decentralized wallet.

The stock exchanges are warned that such transactions carry a higher risk of being illicit and are left to their own discretion to apply enhanced due diligence measures.

Scale: P2P crypto exchanges

P2P exchanges allow users to bypass CEX regulations and convert between cryptocurrency and fiat currency.

On these platforms, users trade directly after agreeing on a fixed price. A user sends money by wire transfer and in return, the receiving party sends the crypto to their wallet.

local bitcoins
LocalBitcoins is a P2P exchange that allows users around the world to trade cryptocurrencies and fiat money without performing any KYC procedures / LocalBitcoins screenshot

Since there is no record linking the two transactions and the cryptocurrency never leaves a decentralized wallet, it is impossible to trace the parties behind the trade.

P2P exchanges are often used by people residing in countries where it is illegal to own crypto.

They can also be mined by users who are trying to get rid of the stolen crypto. Aware that they cannot withdraw their coins through a CEX, these users can sell off large sums on P2P exchanges by offering a rate slightly lower than the market.

What does the future hold?

Under decentralization, the power to remain anonymous on a blockchain remains with the user. However, authorities are still able to regulate the space by monitoring entry and exit points. This appears to be a fair compromise as it deters the illicit use of anonymity, while allowing regular users to continue to reap the benefits.

That being said, new ways to hide blockchain transactions have now started to emerge. As technology evolves, it is more than likely that new regulations will follow in the near future.


Featured Image Credit: CoinFlip


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The first usable Cardano DeFi dApp goes live, and it’s not SundaeSwap https://innovativewords.com/the-first-usable-cardano-defi-dapp-goes-live-and-its-not-sundaeswap/ Tue, 04 Jan 2022 05:00:00 +0000 https://innovativewords.com/the-first-usable-cardano-defi-dapp-goes-live-and-its-not-sundaeswap/ Data aggregator DeFi Lama adds Cardano marking the start of the project’s foray into decentralized finance. It happened thanks to an under-the-radar DeFi offering that went live at the start of the new year. Recently, Cardano has felt the heat of its lack of usable dApps. Critics say it’s been about four months since the […]]]>

Data aggregator DeFi Lama adds Cardano marking the start of the project’s foray into decentralized finance. It happened thanks to an under-the-radar DeFi offering that went live at the start of the new year.

Recently, Cardano has felt the heat of its lack of usable dApps. Critics say it’s been about four months since the channel had smart contract functionality, and yet the ecosystem is struggling to gain traction.

Throughout this time, Input Output (IO) CEO Charles Hoskinson has responded to these concerns. Most recently, during a year-end live stream, Hoskinson said that a huge DeFi ecosystem is starting to show up.

Nonetheless, the skeptics among us would say that talking is cheap. And that Hoskinson’s words do not support an important functional and usable dApp ecosystem.

However, two days after the live stream in question was released, Cardano gets its first usable DeFi dApp.

Cardano DeFi is officially here

Since Alonzo went live on September 12, the Cardano ecosystem has been under pressure to grow. Hundreds of projects across DEXs, Wallets, DeFi, Even Coins, Stables, Oracles, and NFTs, to name a few categories, are underway.

Given SundaeSwap’s highly publicized test network in early December, not to mention IOs collaboration with the team to ensure a smooth test network, many speculated that SundaeSwap would be the first usable DeFi dApp to go live.

However, a month later, SundaeSwap is not ready for its mainnet launch. Other contenders for the first usable DeFi dApp include Ergo and Liqwid.

But surpassing them all was MuesliSwap, which DeFi Lama said went live on January 2 and currently has a Total Locked-In Value (TVL) of $ 845,000, representing 100% of the Cardano DeFi ecosystem.

MuesliSwap is a DEX with a launch pad functionality that also runs on the Bitcoin Cash blockchain.

cardano defi is here with MuesliSwap
Source: defilama.com

This ranks Cardano 78th out of 87 blockchains listed on DeFi Lama, placing it above little-known chains such as Ubiq, Hoo, and Liquidchain.

Ethereum ranks first with $ 158 billion in TVL. In contrast, Terra ranks second, far behind Ethereum in TVL, with a locked in value of $ 20 billion. As such, Cardano has a mountain to climb to live up to its “Ethereum-killer” label.

The work is not done yet

While it’s encouraging that Cardano is now offline, in his last live stream, Hoskinson said there was more to come in 2022.

Specifically, Hoskinson referred to “finding a point of expressiveness as a community”. In other words, as long as the foundation is in place, IO still needs to fine-tune the protocol, making sure DeFi is the best it can be. This implies developing better scalability, more interoperability and working on governance.

“Cardano is our attempt as a community to try to reflect this evolution and move it forward and there’s a little bit of magic and scalability sprinkled in and a lot of talk about interoperability and identity and a lot of work. carried out on governance. “

His overall take home message underscored the magnitude of the work that has been done in Cardano to date. And what is to come in terms of sustainability.

In this way, the community can be assured that the project will be effective for decades to come, if not indefinitely due to its governance configuration.

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Bitcoin Receives Further Selling Pressure From China Data Shows https://innovativewords.com/bitcoin-receives-further-selling-pressure-from-china-data-shows/ Sun, 02 Jan 2022 09:31:30 +0000 https://innovativewords.com/bitcoin-receives-further-selling-pressure-from-china-data-shows/ The price of Bitcoin has not moved well over the past week, and this is due to additional selling pressure from China. Authorities in the country have ordered the exchanges to take out users and their holdings by December 31. This created selling pressure from China which lowered the price of Bitcoin. This can also […]]]>

The price of Bitcoin has not moved well over the past week, and this is due to additional selling pressure from China. Authorities in the country have ordered the exchanges to take out users and their holdings by December 31. This created selling pressure from China which lowered the price of Bitcoin. This can also be confirmed by the fact that the selling pressure is high during Asian hours and much less during European hours. While the near-term scenario looks bad, it could be great for 2022.

Why should we be bullish?

As the deadline for removing users from exchanges in China has passed, we can expect the country’s selling pressure to ease. We have hit lows of around $ 46,000 on the Bitstamp exchange and other platforms as well. And unlike last time, the Chinese problem does not seem to have much effect. The minors have already left the country and the exchanges are also mostly erased.

Image source: Zee News

This is probably the last bearish move we are seeing due to China as the country’s crypto deadline passes. So now, once things stabilize a bit, it is not unlikely to expect a rapid move upward. As sales decline, we can expect the bull market to take off from there. The selling pressure from China can also help to understand why, unlike every bullish year, this time December did not see a strong recovery.

January has been mostly bullish for Bitcoin, and a rally of relief could be near as China’s FUD dies out. Jesse Knutson, a Blockstream analyst, said that “this is also a potential reason for optimism for the future, as the Chinese foreign exchange surplus will be eliminated from the end of this month.”

2022 will be good

It is quite obvious that 2021 was not the year we reached the peak of the Bitcoin bull market. This is in part due to the expansion of Bitcoin cycles and the FUD surrounding it. Many analysts say that Bitcoin’s peak in this bull market could be anywhere between H2 2022 and H2 2023. So I think it makes perfect sense to be bullish this year.


What do you think of Bitcoin’s decline in December due to additional selling pressure from China? And do you think that now that things have changed, we can expect a running of the bulls? Let us know in the comments below. Also, if you found our content informative, like it and share it with your friends.

Also read: Robinhood to launch cryptocurrency wallets soon.

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Estonia’s new AML laws set to crack down on the crypto industry https://innovativewords.com/estonias-new-aml-laws-set-to-crack-down-on-the-crypto-industry/ Fri, 31 Dec 2021 18:01:28 +0000 https://innovativewords.com/estonias-new-aml-laws-set-to-crack-down-on-the-crypto-industry/ Starting in February, Estonia is set to introduce sweeping changes to its definition of Virtual Asset Service Provider, or VASP, to include several cryptocurrency-related services – a move that could impact Bitcoin (BTC) ownership in the country – according to the European compliance specialist. Sumsub. On September 21, the Estonian Ministry of Finance released a […]]]>

Starting in February, Estonia is set to introduce sweeping changes to its definition of Virtual Asset Service Provider, or VASP, to include several cryptocurrency-related services – a move that could impact Bitcoin (BTC) ownership in the country – according to the European compliance specialist. Sumsub.

On September 21, the Estonian Ministry of Finance released a bill to update the Prevention of Money Laundering and Terrorist Financing Act (Anti-Money Laundering Act) as part of the government’s efforts to prevent money laundering and terrorist financing.

As Sumsub reported, the legislation is now under interagency review, with implementation slated for February 2022. Regulated crypto companies have until March 18, 2022 to bring their operations and documents into compliance.

According to New DeFi CEO Mikko Ohtamaa, the updated law effectively bans non-custodial software wallets, as well as decentralized financial products, in the country. This is because the provisions of the bill target VASPs, which include crypto exchanges and wallets, in Estonia. When the invoice is ready, VASP will be extended to cover decentralized platforms, initial parts offerings and other services. Violation of the provisions may result in a fine of up to $ 452,000, or 400,000 euros.

According to Ohtamaa’s interpretation, the new law has the following effect: “You are only allowed to keep your Bitcoin in a Virtual Asset Service Provider (VASP). VASP may freeze your account. It is therefore no longer effectively your Bitcoin. “

Related: Estonia’s crypto honeymoon ends as stricter regulations loom

Estonia was one of the first countries in the European Union to license cryptocurrency companies, but had to crack down after hundreds of billions of dollars in dirty money were discovered in Danske Bank, placing Estonia at the heart of the biggest money laundering in Europe. disaster.

As Cointelegraph reported, Matis Mäeker, head of the Estonian Financial Intelligence Unit (FIU), urged the government in October to “reset the rules and restart the licenses”. He said the general public is unaware of the risks inherent in cryptocurrency, especially with regard to its alleged role in money laundering and terrorist financing, as well as the vulnerability of the industry. cybercriminals.