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Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here, as it was more difficult to get than opening a crypto wallet, which only requires an internet connection and a few minutes.

The situation has not changed that much, and even these days, criminals are still limited when it comes to spending money in its crypto form. However, large cash-outs by bad actors can be troubling for the crypto industry itself, as it can start a bearish trend that could, once again, crash the crypto market.

Visa’s new move might change things

All of this is something that might change soon, as Visa plans to start offering crypto-funded debit cards. Visa is, by no means, original when it comes to the idea. There were many others that attempted to bring crypto credit and debit cards in the past, but their efforts resulted in failure as they could not comply with regulations.

In Visa’s case, however, things appear to be different. The company’s recent cooperation with Coinbase seems to be directed at bringing a UK crypto card, which will allow users to spend their money directly from wallets. What’s more — they will be able to do so at any location where Visa cards are accepted, which at this point includes pretty much the entire world.

Not only that, but the card’s spending limit is expected to start at £10,000 per month, and grow to £20,000 for certain users.

Regulatory compliance remains an issue

Of course, all of this still requires answers to a few questions, such as — how did Coinbase go about satisfying KYC and AML regulations? There is no doubt that the regulatory environment regarding digital currencies is evolving — and has been for quite a while. Even some wallets managed to find a way to satisfy regulations and comply with the rules, which brought support from the regulators. They are still in the minority, of course, and criminals can still use most wallets without oversight, but the situation does appear to be changing for the better, in this regard.

Even so, with the majority of wallets still not being compliant with regulations, anyone who uses Coinbase could potentially get a payment from illegal sources with nothing to stop them, and with no punishment. But, Visa points out that Coinbase is regulated by the US authorities, and that the partnership between the two is subjected to enhanced scrutiny.

Coinbase itself fights against the issue by blocking accounts that are involved with suspicious activities. However, that would still require that the company notices suspicious activities in the first place. The nature of cryptocurrencies is the real issue here, as even if all exchanges and wallets implement KYC procedures, cryptos still remain mostly anonymous. The only real way of preventing illegal transactions would be to block payments that come from unregulated wallet accounts. However, this would go against everything cryptocurrencies stand for, not to mention that it would come at huge costs.

Additionally, even real, traditional banks have seen such issues, as there are many of them in countries with less strict regulations that might not be compliant with regulations. If the banks have found this issue too difficult and expensive to deal with, how can the crypto industry deal with it?

Crypto institutions will have to find a way to become compliant with regulations if they wish for Visa’s plan to become a reality. Otherwise, the last several decades of the fight against financial crime would simply be erased, and major consequences could come as a result.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

How to Turn the Upcoming Crypto Bull Run to Your Advantage

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Bull runs are back, and as the crypto market sees strong recovery with each passing month — new ones are likely to keep coming in the foreseeable future. With that in mind, there is a lot of profit to be made for those who know how to exploit the current situation. Particularly when it comes to exploiting the future that analysts are almost sure is about to arrive.

It is no secret that many had lost massive amounts of money due to the 2018 crypto winter when bears were roaming the crypto space, and prices were constantly in the red. Bitcoin itself dropped from $20,000 to $3,100 within a single year.

Now, however, BTC is back on track, climbing from $3,200 to its current $8,500. In fact, the largest coin is likely to keep going up, with occasional minor corrections. A similar situation was seen back in 2017, although there are quite a few differences this time. For example, most experienced investors do not trust altcoins and ICOs as much as they used to. These trends were proven to be way too risky, and the chances are that investors will risk losing much more than they might gain.

With that in mind, one of the biggest questions that traders are asking right now is whether or not it is possible to make major profits in the crypto market…

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