In the new competitive contemporary world, we tend to see a tussle between technologies. Same can be observed between the KYC and Cryptocurrency. There are speculations that cryptocurrencies might face an end because of KYC. Many even believe that KYC or ‘Know your customer’ may sweep off the popularity of its existence from the planet. Now, what can be the reason behind this clash? Let us get deeper to know whether there are any positive ways which could bring a solution to an end the clash between KYC and cryptocurrency.
It might seem hard to believe for cryptocurrencies which are considered to be the best alternate option for traditional currencies might face a tough challenge from KYC. Some may found it hard to accept, but it is true. But there is a possibility to meet with fiscal rules if these two technologies successfully coordinate with each other.
The topic of cryptocurrencies like blockchain and Bitcoin and its tussle with rival currencies has always been a topic of discussion across media and other social platforms. It is all because cryptocurrencies have been a new financial technology innovation for investment. It features a unique digital form of trading all around the world. We became so familiar with this digital currency. And have got so much to know regarding how to buy Bitcoin in India.
However, with new technology like cryptocurrency, there is much confusion which is brewing on.
The factors behind such ongoing negative speculations about cryptocurrency can be about its shady nature and concern for security and also the potential risks involved in it. Whereas for banking regulations like Anti-money laundering and know your customer, anonymity is a major concern. This might end the clash between KYC and cryptocurrency.
According to experts from the financial industry, KYC is posing a serious threat to many cryptocurrencies. It includes the Bitcoin, the dominant one and their volatility. But the partnership of these two rival technologies can meet all required fiscal rules in terms of transparency.
Fear Of Losing Control
Apart from a clash between the KYC and cryptocurrency, you need to know that cryptocurrency. It has emerged as a milestone in the business world. Still, this digital monetary technology has come under the scanner for being associated with illegal activity and suspicion about secrecy. Even though cryptocurrency has emerged as a milestone in the new contemporary business world. Still, this digital monetary technology has come under the scanner for being associated with illegal activity and suspicion about secrecy. Opposition towards cryptocurrencies is possibly expected from government factions, globally.
The biggest example to mention is a big nation like China, which strictly banned cryptocurrencies earlier. These actions reveal the insecurity of losing control since it functions independently from the central authorities like banks. But it might fall into political influence. A KYC expert has stated about the financial crisis all around the world. It is unsurprisingly to see banking regulations becoming stricter.
In the case of KVC, banks are given the authority to keep records for identification of every customer. According to financial expert, it is very critical to do the business with someone, but it is much challenging to discover this information. The concept of KYC truly involves risks. The security concerns surrounding cryptocurrencies are found to be anonymous. But some financial experts have expressed doubt over the blockchain addresses and consider it as false, as the moving of assets from one address to others can be tracked very simply.
Role Of Third Party
There are many other crucial factors which ignite the clash between KYC and cryptocurrencies. There are companies who do not adhere to regulations which mounts much pressure on cryptocurrencies. Financial institutions even ban these digital currencies to legal responsibilities. But some companies have become a bridge between these two technologies. According to some financial experts, cryptocurrencies will continue to stay longer in the race.
Benefits Of Cryptocurrencies
Cryptocurrency has provided many benefits to the users. One such is the easiest way to buy cryptocurrency. We often miss to point out is that these digital currencies also provide many regulatory benefits. Some of these benefits include audit trails which are trusted and accessible. It makes this financial technology complex to hide transactions which are not legal. So it is too early to speculate that in the clash between the KYC and cryptocurrencies, the digital financial would lose its credibility. Stay updated with Bitcoin news today and get all to know about the Bitcoin.
Technologies are always rival with each other. Each technology always tries to supersede others with its unique way of functioning and giving satisfactory results. In the same way, one can expect the clash between KYC and cryptocurrency. But it is too early to say who will win to in whom. The provision of KYC might be best in its way, but let us not underestimate the cryptocurrency too. These digital currencies benefit in trusted audit trails. No illegal transactions can go overlooked in this digital financial system. According to financial experts, it will be too early to speculate about the end of cryptocurrency due to KYC. No, it is not that easy. It has the potential to stay for the long run.