Activity in cryptocurrency started to increase in the third quarter of 2020, it continued to rise rapidly in the next two quarters. There is no reason to believe that, this trend will not be consistent into 2021. Crypto media was excited with crypto market behavior and various analysis were done on every aspect related to the crypto industry. One interesting report caught our attention, this related to crypto crime. The author made a statement that should come as a surprise to no one, that crypto crime would rise in 2021. It is important to recognize that, the solution to tackle crime related to cryptocurrency is already being given significant attention.
Cryptocurrency has come quite close to being treated like real money. Given the technical structure of crypto and blockchain, it can be extremely challenging to trace, the human entity behind a crypto transaction. This along with a surge in crypto activity beginning in the second half of 2020, has made it the target of scammers and fraudsters. This scenario should alarm no one, remedial action has already been set into motion. Glitzkoin had published two important reports in the Infopedia section of its website. The first report focused on 2021 being the Year Of Cryptocurrency. The second report highlighted the fact that, 2021 would see the rapid development of crypto legislation.
While crypto crime might not have yet peaked, law enforcement agencies have a fairly good idea about where exactly it is heading. Along with crypto specific laws that are being developed, authorities are also tackling crypto crime using the existing legal system. We have seen several instances of scam project promoters and even perpetuators of crypto exchange malpractices, being brought to justice. True that much remains to be done but, the challenges on hand are manageable.
The legal framework for crypto has taken a forward looking approach, measures have been put in place to ensure that crypto fraud can be tracked down to a specific person or group of persons. Many countries have now made crypto exchange registration mandatory. We have also seen cases where exchanges have been asked to implement, stricter measures when evaluating KYC support documents. Some exchanges have started accepting official documents for KYC verification. Documents accepted are often restricted to those issued by government agencies – passport, ID card, Tax ID and driving license are some such documents. This whole exercise is implemented to ensure that, criminals can be nabbed as and when a crime is committed.
Glitzkoin Business Manager Lila Ruzaini had this to say on the issue of crypto crime, ‘… crypto is on the rise, increased crypto activity and acceptance has unfortunately attracted some bad elements. The legal process is being readied and this should be welcomed by all stakeholders’.
Mikhail Koslov the Russian Advisor in the Glitzkoin team, highlighted the need for crypto laws that can be enforced across nations. In his words, ‘limiting crypto laws to each nation, weakens their effectiveness. Crypto criminals will not respect geographical boundaries, the law will need to keep pace with their modus operandi. If laws function in watertight compartments within the nation that they are made in, crypto criminals will choose to operate from nations that have the weakest laws’.
GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token. The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry.
The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.
The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform. This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases.
Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.
Related Resources: [Project Updates]