The Need In Privacy Decrease: BTC and Other Ecosystems
If before, cryptocurrency was considered something new and completely incomprehensible, now the attitude towards it has changed dramatically. More than 10 years have passed since cryptocurrency broke into the world market and became an active player in the big financial game. But many analysts see that over this long time, cryptocurrency was not able to create a reliable infrastructure that would allow it to fully become on a par with traditional financial assets.
Chainalysis spokesman Jesse Spiro agrees with the prevailing sentiment in the crypto community regarding this issue. He is convinced that only the introduction of an effective system of norms will allow cryptocurrency to reach a new level of demand and acceptance.
“Cryptocurrency will be able to reach the level of demand for traditional assets only if a system is introduced that will clearly regulate the relationship between the areas of financial transactions. It is important for users that existing risks are minimized. Thanks to the developed regulatory regime, the cryptocurrency will be able to create an effective eco-system and attract a large flow of new users.”
The question of the need to create a system of clear and clear rules for cryptocurrency has been raised before. In particular, SEC representative Hester Pearce stated the need for a set of measures to improve the confidentiality system within the crypto community. Despite the fact that such proposals are “in the air” and are discussed by analysts, this problem remains unresolved.
Patrick South, vice president of development for the Digital Commerce Chamber, is concerned about the possibility of using cryptocurrency to carry out illegal activities. In particular, he notes that cryptocurrency appears in the role of an asset for money laundering and terrorist financing. These concerns negatively affect the reputation of cryptocurrency and do not contribute to increasing confidence among the world community.
The crypto analyst South also noted the following:
“It is necessary that the exchanges during the transaction between the parties retain the identification data of the participants in the operation. Virtual Asset Service Providers should keep data on funds transfers between e-wallets. ”
At the same time, the South believes that these measures can pose a threat to the life of cryptocurrency users. He believes that cybersecurity is in a precarious position now.
The South also noted:
“Now we have the problem of the lack of an effective system that would regulate the issues of data confidentiality and cybersecurity of cryptocurrency. “Many countries do not have such a well-developed licensing or registration regime as the United States.”
The situation remains critical: according to data for 2019, criminals “laundered” USD 2.8 billion through Bitcoin. This is one of the main reasons for popularizing the initiative about the need to identify user data during transactions.
Thus, the introduction of an effective regulatory system, addressing the issue of cybersecurity and data privacy will help create a favorable ecosystem for cryptocurrencies. Spiro analyst sees positive developments in solving this problem:
“Regulators are already taking measures aimed at improving the data storage system and conducting financial transactions. It is hoped that soon violations and illegal actions within the cryptocurrency community will be minimized. ”