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Cryptomania out of Control, How KYC will be the Norm
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Cryptomania out of Control, How KYC will be the Norm

by John M.March 12, 2018

We have talked, rather extensively at that, about the illicit practices that have seen Bitcoin and similar assets bogged down in everything from drug trafficking to human trafficking. Those are definitely chilling revelations. Knowing that something as ludicrous as a make-believe currency is now deciding the fortune of people is indeed damning. But what are some of the new and gravest transgressions in the world of crypto goods?

The fact that it is no longer just a matter of running a Ponzi scheme there or robbing an entire crypto exchange to fuel your authorities inclinations. Most recently, Forbes reported on the practice of hackers sneaking into corporate and personal computers to mine Bitcoin. It is indeed a rather displeasing prospect to know that ill-meaning third parties have targeted you and security online, naturally, should be paramount.

However, just trying to root out hackers is never easy. Instead, a more radical write-up at Forbes has it – we should all strive to shut down the crypto world once and forever. We have never been so decidedly against cryptocurrencies as such.

On the contrary, you can see a lot of good that has been done because of them. Blockchain technologies are now expanding and incarnating in all sorts of fintech solutions, which promise to buy the banking industry.

Bankers from all over the world, including central regulatory bodies, are now rallying to prop up cryptocurrencies and ensure that everything is okay. Still, some risks loom, and detractors or observant critics may even argue that more measures that are drastic are sorely needed this time.

Should We Shut Down Cryptocurrencies En Masse?

The model that cryptocurrencies have been using is coined as permission mode, which means that pretty much anyone can signed up and undertake mining operations. And you have guessed correctly – even criminals will soon have set up their own factories in pursuit of digital riches. Hence why hackers are juicing off personal computers to subsidise their own efforts.

However, to say that all factories that have been set up to mine bitcoin are criminal is erroneous and grossly so. You will be quite pleased to know that many investors have been putting hard-earned currency in order to buy the necessary hardware and push ahead.

However, most people who own crypto coins are not too eager to pay tax. Additionally there has been mounting proof that crypto owners have also been responsible in abhorrent activities such as:

  • Funding terrorism
  • Money Laundering
  • Subsiding human trafficking

What the Big Deal With Crypto Mining Done by Illegal Entities?

 To cite the self-evident truth that it is just that – illegal, is quite simple. Instead, we should focus on the real-world implications. If you want to know how easy it is for you to get infected, it boils down to miskicking one pernicious link which will then send the armies of bugs into your computer, sapping its performance to serve nefarious ends.

Generally, malware can be caught and nipped in the bud. However, with cryptocurrencies and the software that is used to excavate crypto assets, you will notice that this software is not truly malware. It is standard mining software that cannot be regulated by anti-virus software because it is just another application that does not compromise the security of your computer so much as it just slows down the overall performance of your computer.

Regulating the Sector or Know Your Customer

We will admit that there are ways of regulating the sector. If people are taught, better private security when it comes to steering clearing from phising ploys it could be feasible to instill an order of things that would allow you to follow transactions up close.

One good practice will be for banks to apply know your customer practices which will allow banks and other regulators to follow through with checks of the origin of the crypto currencies.

Introducing checks is quite simple although it would be met with stern opposition among crypto enthusiast. Their reluctance is quite understandable – they have jumped on the sector based on a promise that they would have complete say over how their money would be handled and nobody would need to have any truck with the authorities.

However, things have changed to the point where cryptocurrencies are financing crime that has been damaging not only lives, personal data, corporations and scientific endeavor. According to Microsoft’s Bill Gates, people have been dying because of cryptocurrencies.

Something should be done and the sector will undergo drastic changes. Whether this will be the end of crypto assets or just a more moderate way to trade into those assets without risking lives is another matter altogether. The future will show us best.

 

 

 

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John M.

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