Category Archives: Web3, Decentralization, DAOs

Crypto Hacking Reached $3.8 Billion in 2022 (Biggest on record)

Chainanalysis | Feb 1, 2023

Chainanalysis 2022 hacks by type - Crypto Hacking Reached $3.8 Billion in 2022 (Biggest on record)

Image: Chainanalysis

2022 was the biggest year ever for crypto hacking, with $3.8 billion stolen from cryptocurrency businesses.

  • DeFi protocols by far the biggest victims of cryptocurrency hacks accounting for 82.1% of all cryptocurrency stolen by hackers — a total of $3.1 billion — up from 73.3% in 2021. And of that $3.1 billion, 64% came from cross-chain bridge protocols specifically.
    • Bridges are an attractive target for hackers because the smart contracts in effect become huge, centralized repositories of funds backing the assets that have been bridged to the new chain — a more desirable honeypot could scarcely be imagined. If a bridge gets big enough, any error in its underlying smart contract code or other potential weak spot is almost sure to eventually be found and exploited by bad actors.

See:  Do Industry Operators, Researchers, and Regulators Agree On How Big Crypto Crime Is?

  • Double edged sword:  DeFi is one of the fastest-growing, most compelling areas of the cryptocurrency ecosystem, largely due to its transparency.  But that same transparency is also what makes DeFi so vulnerable — hackers can scan DeFi code for vulnerabilities and strike at the perfect time to maximize their theft.
    • The core issue is that DeFi developers prioritize growth over all else, and direct funds that could fund security measures to rewards in order to attract users.
    • DeFi code auditing conducted by third-party providers is one possible remedy to this.
    • Test protocols with simulated attacks.
    • Circuit breakers. DeFi protocols should build out automated processes to pause their protocols and halt transactions if suspicious activity is detected

Continue to the full article --> here


NCFA Jan 2018 resize - Crypto Hacking Reached $3.8 Billion in 2022 (Biggest on record)The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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The Use of Cryptocurrency in the Fundraising and Venture Capital Industry

Guest Post | Feb 1, 2023

Unsplash Christina @ wocintechchat.com business meeting - The Use of Cryptocurrency in the Fundraising and Venture Capital Industry

Image: Unsplash/Christina @ wocintechchat.com

Cryptocurrency has taken the world by storm since its entrance into mainstream awareness. This new form of money is quickly becoming a sought-after resource for individuals looking to acquire venture capital or to fund startups. The possibilities that cryptocurrency provides in the fundraising and venture capital industry are unique, adding another layer of complexity to the already intricate process, which requires careful consideration from entrepreneurs and investors alike.

This is because cryptocurrencies offer several advantages over traditional fiat currencies, such as lower transaction costs, higher security, and quicker settlements. Cryptocurrencies are also becoming more widely accepted as a form of payment. Because of this, cryptocurrencies are becoming more popular in the fundraising and venture capital sectors. In fact, some startups and venture capital firms now accept and trade cryptocurrency for investment deals.

What is cryptocurrency fundraising?

Cryptocurrency fundraising refers to the process of raising funds for a project or venture by accepting cryptocurrency as a form of payment. This type of funding has become increasingly popular in recent years as it enables companies to tap into a global pool of investors. Using cryptocurrencies to raise money is an option that works well for initiatives tied to blockchain technology. A popular form of Cryptocurrency fundraising is the initial coin offering (ICO).

An initial coin offering is a fundraising event within the blockchain technology framework. It’s similar to an initial public offering (IPO), except that it employs cryptocurrency instead of traditional currency. There are two different kinds of initial coin offerings: private and public.

When a company makes a private initial coin offering, only a select group of investors who have met certain criteria are permitted to participate, whereas a public initial coin offering is a form of crowdfunding that is directed at the broader public. In addition, the initial public offering is considered more democratic than other forms of investing since virtually anybody can become an investor. Other forms of cryptocurrency fundraising include initial exchange offerings (IEO) and initial decentralized exchange offerings (IDO).

What is venture capital financing?

Venture capital is the funds that individuals invest in businesses in return for a stake in the company. Most of the funds generated are invested in the company's growth and expansion. Venture capitalists prefer to back startup companies that can develop into substantial enterprises, have a clear strategy for the future, and provide a favorable return on investment.

Venture capital funding is usually divided into five stages. These stages are pre-seed, which is also known as stage 0; seed capital (stage 1), startup capital (series A), early stage (series B), and expansion stage (series C).

Venture capital can serve various purposes for a startup, each tailored to the company's specific requirements at a given moment. For example, crypto venture capital, in the context of cryptocurrencies, can be used to speed up development, launch the project, recruit key personnel, and ready the business for an initial coin offering.

People investing in venture capital funds have the same goal: to amass a large fortune in a short period of time. Accordingly, administrators of such funds often extend invitations to potential investors using a prospectus.

Cryptocurrency fundraising and traditional fundraising

Cryptocurrency fundraising is often compared to traditional equity fundraising, as both involve the exchange of funds for a stake in the project. However, there are a few differences between cryptocurrency fundraising and traditional fundraising. Firstly, cryptocurrency fundraising is often done through initial coin offerings, a crowdfunding type. Secondly, cryptocurrency fundraising is usually open to a wider range of investors, as it does not require accreditation.

Why venture capital firms are interested in the crypto industry

There’s a rise in demand for investments in the blockchain/cryptocurrency industry. As a direct consequence, crypto venture capital companies are putting money into the crypto space to achieve high returns on their investments.

The following are some of the factors that contribute to the sector's attractiveness to potential investors:

  • The cryptocurrency/blockchain industry has tremendous room for expansion. This demonstrates the industry's rapid development and enormous growth potential.
  • Cryptocurrency investments appeal to venture capital companies due to their decentralized and distributed nature. Another main attraction of crypto finance is the exchange of tokens rather than shares at fundraising time.
  • Tokens, as opposed to shares, are often traded throughout the fundraising phase of a cryptocurrency venture. Due to these facts, venture capitalists see cryptocurrency and blockchain technology as a sector with the potential to become profitable and worthy of investment.
  • The arrival of blockchain technology and cryptocurrency has fundamentally changed the web world as we know it, making Web3 the web of the future. At this time, several firms are developing decentralized applications by using blockchain technology. Furthermore, this foreseen future is getting ever closer, due to the development and expansion of the crypto industry.

Advantages of using cryptocurrency in fundraising and venture capital financing

Unsplash Art Rachen bitcoin - The Use of Cryptocurrency in the Fundraising and Venture Capital Industry

Image: Unsplash/Art Rachen

Increased transparency and accountability

All transactions on the blockchain are verified by a distributed network of nodes, making the data available to anybody. Since the blockchain record is accessible to the public, tracking the movement of money is easy, because cryptocurrencies are traded directly between digital wallets.

Ability to attract emerging investors

Raising funds through cryptocurrency could be the perfect way to get young investors interested. Not only is this a great way to access an increasingly valuable fund base, but these emerging investors come with a ready-made enthusiasm to make serious investments. Plus, it's the modern, tech-savvy solution that's sure to make any project stand out!

Lower transaction costs

Since many participants who would normally function as middlemen in financial transactions are removed from a blockchain system, the transactions are usually processed more quickly and at a lower cost. This is especially helpful when making international donations, because banking costs and procedures might reduce the overall impact of the funds.

By accepting cryptocurrency donations, venture capital firms may expand their global reach without experiencing any of the many drawbacks that often outweigh the benefits of a more geographically dispersed donor pool.

See:   Blockchain-based replacement for traditional crowdfunding: DAOs

Although there are a lot of benefits linked with them, the use of cryptocurrencies comes with various challenges, such as uncertainty over regulatory requirements and market volatility.


NCFA Jan 2018 resize - The Use of Cryptocurrency in the Fundraising and Venture Capital IndustryThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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NFT Use Cases are Establishing New Legal Frontiers

Kramer Levin | Jan 23, 2023

Unsplash Milad Fakurian NFT - NFT Use Cases are Establishing New Legal Frontiers

Image: Unsplash/Milad Fakurian

As the applications for NFTs grow, the legal considerations expand, particularly when the NFTs are used in ways that touch on multiple areas of the law.

  • Creative work NFTs: NFTs are associated with a particular work, be it an image, video, music, or writing (currently the most popular use case)
    • The most typical legal issues with these NFTs involve contract law and IP licensing in copyrights and trademarks.
    • Any rights to the copyrighted art must be sold or explicitly licensed to the NFT purchaser to be properly conveyed. For example, there may be issues on what rights are provided to the person who holds the NFT, including whether they can commercially exploit the art and, if so, what limitations are placed on this usage.
    • Failure to notify a purchaser of what rights they are obtaining can lead to confusion because purchasers of NFTs often assume they are buying full ownership the actual artwork and can do what they want with them, such as exploit the artwork commercially.
    • A new and rapidly expanding consideration is when an NFT is generated in whole or part by artificial intelligence (AI).  There may also be the layering of issues, such as when AI is fed a copyrighted piece or pieces of work to generate new works that alter, expand or build upon the work it was fed.
    • Another consideration that can arise under some uses for NFTs is if they are securities, meaning that they would be regulated by the Securities and Exchange Commission (SEC) if sold to customers in the U.S.

See:  Aftermath Islands Metaverse Launches Events Pavilion with Over 1.1 Million Player-Generated Resource Pack NFTs

  • NFTs for Metaverse and gaming:  For example, an NFT could be associated with having the ability to unlock the use of a particular character in a game. Or it could be used as part of an inventory system to identify the character’s equipment, where a particular set of armor is associated with a corresponding NFT. NFTs can also be sold in random “packs” similar to trading cards or can be associated with ownership of a particular plot of virtual land within that particular world.
    • NFT collectibles, fantasy sports and gambling. In addition to the legal considerations discussed above, this type of use that provides prizes must consider gambling and related contest and sweepstake laws, which are often regulated differently state by state. These factors must be considered specific to what is provided with the NFT at issue and the jurisdiction(s) over the purchase.
  • NFTs linked to real-world assets:  NFTs have also become linked to real-world physical assets and signify ownership or some right associated with that asset. Instead of keeping physical records on real property in a city hall archive as the definitive record of ownership, this information could be recorded on the blockchain. In this manner, it could be easily searched and verified.
    • The ability to transfer ownership rights in real-world physical assets already has an extensive legal background. These include issues related to contract law, real estate law, tax compliance, the Uniform Commercial Code (UCC), etc. For example, real estate has its own unique body of law governing, for example, how to record and transfer property. Any usage of NFTs for real property would be required to navigate these laws in addition to those generally governing NFTs.

See:  After you die what happens to your digital assets and NFTs?

  • NFTs and identity:  there are limits to what can be done without having a transaction tied to a particular real-life person or at least some measure of a user’s reputation.
    • For example, the above scenario of a DeFi loan is based on what can be locked in as collateral on the blockchain. It does not consider other off-chain assets that may support the borrower’s creditworthiness or that the borrower had taken out loans before and always paid them back.   In other instances, users should be verified for anti-money laundering (AML) purposes.

Continue to the full article --> here


NCFA Jan 2018 resize - NFT Use Cases are Establishing New Legal FrontiersThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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FIS Report: Embedded Finance, Web3 and ESG Lead 2023 Fintech Investment Focus

FIS Release | Kim Snider | Jan 24, 2023

FIS investment trends research 2023 - FIS Report:  Embedded Finance, Web3 and ESG Lead 2023 Fintech Investment FocusA global study of 2,000 executives at firms across markets revealed plans to increase investment in embedded finance, environmental, social, and governance (ESG) frameworks, and decentralized finance in 2023, including cautious optimism towards cryptocurrency.

  • Inaugural research by FIS 2023 Global Innovation Report asked c-suite and senior executives in financial services (banks, insurers, capital markets firms, and fintechs) and non-financial businesses (retail, restaurants, travel, gaming and digital content, and technology providers) globally about their key areas of financial investment in 2023.
  • 4% of financial services firms’ executives across the globe say they will invest significantly in developing embedded finance products in 2023 as consumers demand more convenient ways to pay, bank and invest.
  • Nearly two-thirds (61%) of all non-financial services executives told FIS it will be strategically important to have a presence in the metaverse in the next three years.

See: 

Deloitte 2023 Sustainability Report: Most Organizations Have Increased Investment but Tough to Move the Needle

FT Partners Jan 2023 Blockchain and Crypto Market Update Report

  • ESG is top of mind for financial services firms globally, with 60% of executives saying they are developing new ESG products and services.
  • Nearly one-third (29%) of U.S. respondents expressed no interest today in developing cryptocurrency services, only 5% of financial services firms told FIS they do not anticipate offering such capabilities in three years’ time.
    • Financial services firms cited a lack of ecosystem services to support crypto (29%), lack of interoperability between platforms (28%), and lack of clarity around regulations (26%) as key barriers to greater adoption within their organizations.
  • There are concerns about DeFi, with 50% of financial services firms citing poor user experience as a barrier to adoption and 47% saying they need to better understand the risks involved before they will participate.

Continue to the full article --> here


NCFA Jan 2018 resize - FIS Report:  Embedded Finance, Web3 and ESG Lead 2023 Fintech Investment FocusThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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L’Oréal’s NYX Makeup Branded DAO Soon Launching

Decrypt | Kate Irwin | Jan 19, 2023

NYX Pro Makeup US DAO project - L'Oréal’s NYX Makeup Branded DAO Soon Launching

Image: NYX Pro Makeup US

NYX Professional Makeup is launching an online beauty “incubator” in the form of a DAO called GORJS, as well as 1,000 Ethereum NFTs called the “FKWME Pass,” the L'Oréal-owned brand announced Thursday.

  • GORJS, pronounced “gorgeous,” aims to set a precedent for “what beauty will be in the metaverse, and lead the cultural conversation as it relates to the values of diversity, inclusivity, and accessibility,” according to the DAO’s litepaper, or technical explanation.
    • The DAO was first announced last June, but it’s finally launching in the near future with the same vision intact.
    • The FKWME NFT passes will be released to the public on February 1, with a price of 0.19 ETH—about $290 each at present.
  • NYX’s DAO, then, is a move beyond physical cosmetics sold at drug stores—an exploration of what makeup means in the digital age of avatars and pseudonymity.

See:  5 Ingredients to Cook Up Your Own DAO

  • The Ethereum DAO’s members will use non-transferable GORJS governance tokens—capped at a total supply of 100 million—as voting chips for various DAO proposals and projects.
    • DAO members can earn the “soulbound” GORJS tokens in a variety of ways, including by purchasing a FKWME Pass NFT (pronounced “fuck with me”). If a token is “soulbound,” it means it’s non-transferable and cannot be moved from the holder’s wallet.
    • The DAO also has a number of Web3-focused executives on its advisory team, including The Sandbox co-founder Sebastien Borget, Ready Player Me founder Timmu Toke, Polygon Labs Metaverse Lead Brian Trunzo, and Amber Ward, CEO of creative agency Invisible North.

Continue to the full article --> here


NCFA Jan 2018 resize - L'Oréal’s NYX Makeup Branded DAO Soon LaunchingThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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Proposed Changes to Crypto Mining GST/HST Rules: What’s Capture and What’s Not?

GST | Jan 12, 2023

Crypto mining taxes - Proposed Changes to Crypto Mining GST/HST Rules:  What’s Capture and What’s Not?In February 2022, Canada’s Department of Finance released draft GST/HST legislation covering cryptocurrency mining. The proposed rules will effectively treat cryptocurrency mining as an exempt supply

  • These proposals have not yet taken effect. According to the Department of Finance, if the legislation is passed, these tax rules will retroactively come into force as of February 5, 2022.

See:  Canada: Release Of Draft Tax Legislation For Consultation including GST/HST for Crypto Mining

  • Section 188.2 deems the provision of “mining activity” to not be a supply for GST/HST purposes. Under the proposed legislation, mining activity covers three pursuits:
    • Cryptocurrency mining: The process by which new cryptocurrency transactions are verified and recorded as a new block on the cryptocurrency network’s blockchain.
    • Cryptocurrency nodes: The process of maintaining a cryptocurrency network’s blockchain and allowing access to the blockchain ledger.
    • Pool mining: The pooling of computer resources by cryptocurrency miners so that they may increase their chances of being the first to validate a transaction. (Cryptocurrency mining occurs on a competitive basis. A mining reward is credited to the miner who validates the transaction first.)
  • Cryptocurrency miners need not collect and remit GST/HST on the miner’s compensation from mining, but the crypto miner also cannot claim input tax credits (or ITCs) for the expenses relating to the cryptocurrency-mining operation.

See:  Canadian Bitcoin Mining 2022 Recap and Outlook

  • Exemption:  The proposed rules for cryptocurrency mining tax in Canada contain an exception: They don’t apply when a person performs the cryptocurrency-mining activity for another person whose identity is known to the first person and who doesn’t qualify as a “mining group operator,” which basically refers to a coordinator of a mining pool. In these limited circumstances—when someone mines cryptocurrency for a known person who doesn’t coordinate a mining pool— section 188.2 doesn’t apply, and cryptocurrency miner may need to charge GST/HST on that supply of mining services.

Continue to the full article --> here


NCFA Jan 2018 resize - Proposed Changes to Crypto Mining GST/HST Rules:  What’s Capture and What’s Not?The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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How Important is KYC for crypto transactions?

Guest Post | Jan 20, 2023

Freepik crypto - How Important is KYC for crypto transactions?

Image: Freepik/crypto

Cryptocurrency is a revolutionary new form of money and it’s here to stay. With its decentralized, digital nature, it can be utilized for financial transactions with greater privacy than a traditional currency like dollars and euros. But even though blockchain technology offers more security than other systems, there are still necessary steps that need to be taken in order to ensure that crypto transactions are done safely. In this blog, we'll be taking a look at why knowing your customer (KYC) is important for crypto transactions.

What Is KYC?

KYC stands for ‘know your customer’ and is a set of procedures required by most financial institutions. It is a process by which businesses verify the identity of their customers in order to ensure that they are not involved in any illegal activities such as money laundering or terrorism financing. This involves collecting information like names, addresses, and other documents to verify the customer’s identity.

What is AML?

AML stands for ‘anti-money laundering’, which is a set of laws and regulations to prevent criminals from using the financial system to launder money. AML requires businesses to put in place certain measures to help identify suspicious activity and ensure that customers are who they say they are.

What is Crypto?

Crypto is a digital form of currency that exists on a decentralized, secure network called the blockchain. It can be used to make payments, store value, and transfer funds without any third-party interference like banks or governments. This makes it an attractive alternative for those who want to make financial transactions without having to worry about the regulations associated with traditional currency. Transactions are secure, private and fast, so it’s no wonder that more and more people are turning to cryptocurrency as time goes by.

Why Are AML Regulations In Place?

AML regulations were put in place to protect businesses and consumers from financial crime such as money laundering. They also help ensure that the customer is legitimate and not attempting to use someone else’s identity for illegal activities. These regulations can help reduce fraud, as well as provide better protection for customers and businesses alike.

What Are Some Examples of Anti-Money Laundering Regulations?

Examples of AML regulations include customer due diligence (CDD), suspicious activity reports (SARs), and know-your-customer (KYC) processes. Let's look further into two and how they prevent money laundering:

Customer Due Diligence:  This is a process where businesses perform due diligence on their customers to ensure that they are not involved in any criminal activity. This includes verifying the customer’s identity, assessing their source of funds, and monitoring their transactions for signs of suspicious activity.

Suspicious Activity Reports: Businesses are required to report any suspicious activity or transactions that may be related to money laundering. This helps prevent criminals from using the financial system for illegal activities.

Combined with KYC, these regulations help make sure that businesses are not unwittingly used for money laundering and other financial crimes. This keeps cryptocurrency transactions safe and secure, while at the same time ensuring that customer data is kept private and secure.

How Important Is KYC For Crypto Transactions?

Cryptocurrency transactions are often anonymous, meaning that there is no way to verify the identity of the sender or receiver. Therefore, it is important for businesses involved in crypto transactions to ensure that proper KYC measures are taken.

What Are The Benefits of Using KYC For Crypto Transactions?

Let's take a look at some of the benefits of using KYC for crypto transactions:

  • Increased security – By verifying the identity of customers, businesses can reduce the risk of fraud and money laundering. This helps to ensure that customer funds are safe and secure, as well as preventing malicious actors from taking advantage of the system.
  • Enhanced customer experience – KYC procedures help to create a smoother, more secure process for customers. This ensures that customers have a positive experience when using crypto transactions, as well as preventing any potential fraud or identity theft.
  • Reduced risk – KYC helps businesses reduce the risk of being involved in illegal activities, as it allows them to verify the customer’s identity before any transactions take place.
  • Improved compliance – AML regulations require businesses to take certain steps to help prevent financial crime. By implementing KYC procedures, businesses are better able to meet their compliance requirements.
  • Improved trust – Customers can have greater trust in a business when they know that it is taking the necessary steps to protect their funds and identity. This helps to promote customer loyalty and build long-term relationships.

Is The Blockchain Secure Without KYC?

The blockchain is an immutable ledger, meaning that it is nearly impossible for anyone to alter or reverse a transaction once it has been written to the chain. However, this does not mean that there are no risks involved with using cryptocurrencies. Without KYC procedures in place, there is still a risk of malicious actors exploiting the system and attempting to launder money or steal identities. That’s why it is so important for businesses to use KYC when dealing with crypto transactions.

Is Crypto The Future?

Cryptocurrency is still a relatively young industry, and it’s uncertain whether it will become widely adopted in the future. But one thing is for certain: KYC procedures are essential for businesses involved in crypto transactions to ensure that their customers' funds and identities are safe.

See:  Will Crypto Recover in 2023? Quite Possibly, and Here’s Why

By taking the necessary steps to implement KYC regulations, businesses can help protect themselves and their customers, as well as create a more secure crypto environment.

In conclusion

KYC is an important part of any cryptocurrency transaction. By implementing proper KYC procedures, businesses can reduce the risk of fraud or money laundering while also creating a smoother and safer experience for customers. This helps to promote customer trust and loyalty, while also ensuring compliance with AML regulations. With the right measures in place, businesses can help ensure that crypto transactions are secure and compliant.


NCFA Jan 2018 resize - How Important is KYC for crypto transactions?The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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