According to the research and data analyzing firms in the cryptocurrency sector, the crypto-industry now has more than 106 million unique/active users. This means that the industry has grown enormous and it is adding more and more users by the day.
When there is so many people using any platform, then it is for sure that there are people there using the platform with bad intentions. As the number of users continues to grow in the cryptocurrency industry, so does the number of elements involved in frauds, scams, money-laundering, and terrorist funding.
It is now becoming a common thing in the cryptocurrency industry for companies to report that they have been hacked or for users to report that they were scammed.
The industry has become somewhat plagued one way or another just like the rest of the sectors in the world. However, cryptocurrency has to face a lot of resistance and criticism from traditional financial institutions. The main reason behind that is because cryptocurrency technology challenges the very nature, ideology, and foundation of traditional financing.
While the traditional financing sector enjoys having control of their clients’ private/financial information, the cryptocurrency sector gives full control of these aspects to the clients themselves.
In the crypto-verse, it is the users themselves that have full command and control over their personal and financial information. It is up to them whom they wish to share their personal or financial information with without feeling any pressure from third parties.
However, this is constantly becoming a huge problem for traditional banking institutions as well as the regulatory authorities. Just recently, it was the Bank of International Settlements (BIS)’s general manager, Agustin Carstens who shared his concerns over the matter.
According to Carstens, cryptocurrencies are currently acting as a loose end for the financial sector. The technology that cryptocurrency technology offers is being used to evade laws and people are getting away with that. This is the reason the regulatory authorities from around the world have to tighten the regulatory knots on the cryptocurrency sector.
As per him, the regulators need to introduce more strict and aggressive regulations for the cryptocurrency sector to keep it under control. Carstens is one of the personalities that have always opposed the idea of cryptocurrencies.
In the past, he has been heard criticizing the very nature of Bitcoin (BTC). On a number of occasions, he has accused some cryptocurrencies of being used as an asset for arbitrage. Quite surprisingly, cryptocurrencies are also being used in order to circumvent certain regulations.
Carstens has claimed that the laws and regulations against financing terrorism and money laundering are not being adhered to by many cryptocurrency institutes. Therefore, the regulatory authorities need to take swift actions against such platforms and set an example out of them for the rest.