According to Crunchbase, the crypto and blockchain industry has drawn roughly $12.4 billion in venture capital into US-based businesses since 2017 and $19.4 billion worldwide. This is great news for Crypto security.
Statistics for 2021 indicates that worldwide and US investments were almost three times higher than in 2020. However, the industry will continue to confront possibilities and difficulties in the future, including more adoption and increased regulatory demands from governments all over the globe which will boost crypto security.
Mainstream Adoption
Cryptocurrency companies are trying to simplify the process of using, purchasing, trading, and acquiring digital currencies, resulting in increased consumer awareness and acceptance.
It will take time for the general population to comprehend and accept cryptocurrencies, just as it took time for people to accept electronic banking services and ATM cards before that.
Global trends, such as El Salvador’s adoption of cryptocurrencies and Sweden and Dubai’s issuance of their digital currencies, bode well for the industry’s growth. El Salvador saw some type of resistance in the forms of protests and riots by her citizens. This move was a resounding boost for Crypto security.
The general acceptance of cryptocurrencies is becoming more “crazy essential” to the sector’s development. Even yet, part of that acceptance has emerged from less serious digital currency uses.
Price Volatility
Recently, the price of bitcoin has been very erratic. The price has risen to more than $60,000 in the last year until dropping to half of this amount by the end of May. The price has been gradually picking up for a while now. The stability of price is not a major boost for crypto security as an asset because of the volatility.
Regulatory Pressure
Since the beginning of 2021, proposals for cryptocurrency regulations have gathered traction.
Financial authorities in nations such as the United Kingdom and Japan have attacked Binance, a leading crypto exchange. They are worried about the use of cryptocurrency for laundering money and consumer dangers.
As part of an attempt to combat tax evasion, the US Department of Treasury stated in May that every transaction of $10,000 or more would be required to be submitted to the Internal Revenue Service.
The state is also looking at potential cryptocurrency exchange rules, with an emphasis on investor protection and avoiding market manipulation, as well as financial account reporting for crypto-asset exchange.
Other nations seem to have more clarity.
In Canada, regulators have adopted a proactive approach to cryptocurrency. In February 2021, it became the first nation to approve a Bitcoin exchange-traded fund (ETF). The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) have also emphasized that cryptocurrency exchange platforms and traders must be registered with provincial authorities in Canada. This will enhance confidence and crypto security for means of exchange
Cryptocurrency is considered property in the United Kingdom, but not legal currency. Furthermore, cryptocurrency exchanges must register with the Financial Conduct Authority (FCA) in the United Kingdom and are prohibited from exchanging cryptocurrency derivatives. Furthermore, the regulatory body has imposed cryptocurrency-specific rules in the areas of know your customer (KYC), as well as AML and CFT.
The Payment Services Act in Japan recognizes cryptocurrencies as legal property, which is a proactive approach to crypto laws (PSA). In the meanwhile, cryptocurrency exchanges in the nation must register with the Financial Services Agency (FSA) and adhere to AML/CFT regulations.
Cryptocurrencies are not recognized as legal money or financial assets in South Korea. As a result, digital currency transactions are tax-free. Crypto exchange regulation is overseen by the Financial Supervisory Service (FSS) of South Korea, with operators subject to stringent AML/CFT requirements. Cryptocurrency exchanges and other providers of virtual asset services must enroll with the Korea Financial Intelligence Unit (KFIU), a branch of the Financial Services Commission, by September 2021. (FSC).
China has banned crypto exchanges from functioning in the nation, claiming that they promote unapproved public funding. Additionally, in May 2021, China banned bitcoin mining, causing many businesses to shut down or move to countries with more favorable regulatory environments. China despite this ban still has significant cryptocurrency which cast questions on crypto security.
The ability to circumvent a country’s established financial infrastructure is a godsend for criminals since it allows them to hide their participation in such operations. The blockchain network is pseudonymous, which means that users are only identifiable by their network addresses.
It’s impossible to track out the origins of a transaction or the identity of the person or company behind the address. Aside from that, Blockchain’s network’s algorithmic trust eliminates the requirement for trusted contacts on both ends of an unlawful transaction. It is expedient to state that crypto security is looking better and people can trust it as a means of exchange.
