Bitcoin Global News (BGN)
July 27, 2018 -- ADVFN Crypto NewsWire -- Why do we really
have to jump through so many hoops to roll out Blockchain
projects?
Is there something behind the
growing regulation of the overall industry?
According to an original report by Coindesk,
it can be logically argued that KYC or, know-your-customer, as well as
even anti-money laundering practices, are really just increasingly
easier ways for the banks to lock out Blockchain projects that
might one day be their undoing.
Coindesk’s main argument on the
subject is that keeping in line with these regulations cost the
space billions a year, with little utility to show for it. In other
words, it is not clear what value KYC firms and other similar
organizations actually bring to the Blockchain industry.
To argue in this way, however, is
problematic to say the least.
Firstly, to even half-way claim
that anti-money laundering laws are merely collusion among the
banks to stop the rise of Crypto projects, suggests that banks are
breaking the law to protect their own interests.
Saying this is not inherently
false, but since it has not even begun to be definitively proven,
it would be better to exercise caution when going directly at
traditional banks, which are propped up by the US
government when they fail.
In almost attempting to answer this
issue related to their argument, Coindesk points out that KYC and
related laws hurt all financial companies to the tune of the same
billions of dollars a year.
While this may be the case, others
would argue that it is necessary to prevent rampant speculation in
the industry, such as that which may have played a big part in
the 2008 financial
collapse.
One element of the company’s
argument against KYC which may in fact be quite valid, is the idea
that as such regulations grow, the chances of immigrants and anyone
who is poor or societally disadvantaged in some way being able to
invest, dwindle.
Related to this, it appears that
KYC and anti-money laundering requirements include having a very
high net worth in order to legally invest, which may have caused
average, everyday Crypto enthusiasts to be frozen out of the ICO
space as regulations have grown to include KYC
requirements.
If we could make one conclusion
here, it should be that KYC and AML requirements need to be altered
to be fair towards those who are not fortunate enough to have a
large amount of money at their disposal.
If not, investing just might
continue to be seen as something that is out reach for the average
citizen, in the USA and abroad.
By: BGN Editorial Staff
News:
Blockchain