What’s the first thing you will consider while choosing a crypto exchange? Most of the people go either after reputation or Fees. But there is more to crypto exchange than just these two factors. 

You need to check the KYC/ AML process, Leverage options, Volume, Prices, Insurance, Asset Selection, Fiat Exchange and most importantly, Security of the Exchange. Although the reputation and fees of the crypto exchange are important factors, you need to make security your first priority. 

We all aware of the scams and frauds related to crypto exchanges. Many people lost their funds due to inadequate security provided by exchanges.

So to help you secure your funds, we are going to discuss about security of crypto exchanges. We will also guide you on how to assure the security of your crypto exchange.

Crypto Exchange

It is a platform where you can purchase and sell cryptocurrencies. You can trade using cryptocurrency as well as fiat currency. All you need to do is create an account with exchanges. You can trade on multiple exchanges as well. It works like a trading platform in a crypto market. Crypto exchanges are involved in trading more than 100 billion dollars in a month.

As the market is growing, the number of threats are increasing as well. So you need to be really careful while choosing a crypto exchange. Make sure it is safe and secure. If you want to protect your funds, you can choose a White Label Cryptocurrency exchange platform. As it is decentralized, there are lesser risks.

Crypto Exchange Security Issues

More than $1 billion were lost in the last few years due to poor security of crypto exchanges. Even after such recurring hacking scams, only 46% crypto exchange have high-level security. You need to pay extra attention to the security factor because of all these reasons.

• Decentralized network: As it is decentralized, the transactions cannot be reversed. The funds lost will be lost forever.
• Third-Party: Most centralized crypto exchanges are the third party. When you deposit funds with exchanges, the entire funds are in a third party’s control. It is risky.
• No insurance: Exchanges many not provide insurance cover for loss of funds. Even if they provide, there might be various conditions and clauses.

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Demand for Crypto Trading As Per the Current Legal Compliance Outlook

 

Nowadays, we are inevitably moving towards a digital eco-system. The global economy is entirely shaping itself while adopting the future benefits of the digital eco-system. Everything, from investments to transfer of money, is going paperless. And a new and promising addition to the digital money domain is Cryptocurrency. Just like other ordinary currencies, Cryptocurrency is also a medium of exchange, except they are designed for exchanging digital information. Cryptocurrency is defined as a decentralized digital currency that uses cryptography for security making it complicated to counterfeit. Since Cryptocurrency is not issued by a central authority, governments cannot take it away from you. 
Invariably, more and more investors are showing their interests in white label crypto exchange software development companies or white label exchange software developers to put their money in the right direction.

The Future of Cryptocurrency

Since institutional money is entering the market, there is a big evolution coming up in Cryptocurrency. Plus, there are countless chances that crypto will be floated on the Nasdaq, which would add value or credibility to Blockchain and its uses as a beneficial replacement to conventional currencies. Some economic analysts predict that all crytocurrencies are needed to be verified exchange-traded fund (ETF). An ETF can make a lot easier for people who want to invest in Bitcoin, but there still requires to be the demand to want to make an investment in crypto, which might not automatically be created with a fund.

What leads to The Demand for Crypto Trading?

When cryptocurrencies are generated, all definite transactions are stored in a public ledger. All identities of people that own coins are encrypted to make sure that the legitimacy of the record is intact. Since the currency is decentralized, you can own it. The government or bank cannot take control over it. Therefore, you do not have to worry about fraud.
In addition to this, ledge ensures that every transaction taking place between digital wallets can calculate an accurate balance. Every transaction is cross-checked to ensure that the coins in use are owned by the existing spender. This public ledger is also known as Transaction Blockchain. Blockchain technology makes sure all digital transactions are secured with encryption and smart contracts that ensure the entity cannot be virtually hacked. With such a level of security, Blockchain technology is balanced to impact every domain of our lives. Therefore, there is no such theft of any identity. That is why opting for crypto trading is a seamless option.
Blockchain contributes to the reason behind the added value of Cryptocurrency. Since cryptocurrencies are easy to use, they are in high demand. You will just need a smart device and an internet connection. Instantly, you will be your own bank making money transfers and transactions. Seems easy?
Today, there are around two billion people who can access the internet but don’t have the right to use conventional exchange systems. These people are clued-in for the crypto market. Today, there is no other electronic cash system that enables you to own your account easily. With Cryptocurrency, this is possible.
Many individuals are more comfortable while working in a virtual world in every domain and the crypto market is driven by the virtual way of making transactions or trading. That is why people would be more interested in the crypto space. One of the biggest advantages of the Cryptocurrency industry is to bring people together from across the globe and helps them work together in a virtual space. Industry participants do not have to worry about getting their own working space together.

Crypto Exchange Demand as Per Compliance in Asia

Invariably, more and more people are investing their time to establishing crypto exchanges in Asia due to uplift in the Bitcoin derivatives market in 2019. Or in other words, there is steady growth in interest from the Cryptocurrency space. Crypto exchange derivatives have considered Asia as their new home. 

Countries like South Korea, Singapore, and India have a great potential for the crypto market. Asia has built a good reputation in the domain of Cryptocurrency. There are many cryto derivatives exchanges that are operating in Asia and they have witnessed a good growth patterns recently. For countless reasons, Asia will be one of the strongest crypto and blockchain hubs in the upcoming years. According to a recent statement made by exchange Deribit, crypto market should be easily available to most, and announcement of new regulation would also put high barriers for most of the traders.

Crypto Exchange Demand as Per Compliance in America

Recently, SEC Commission Hester Peirce, talked about uplift in the demand for Cryptocurrency. She said, there is a good increase in the demand for Cryptocurrency as more and more investors are seeking to diversify their portfolios. She also mentioned while noting the Covid-19 pandemic, we are witnessing more interest coming across from institutional quarters than we have in the past few years. More and more people are also tending to invest in the crypto space. 

She also explained about how people are now more comfortable working in the virtual space. People are now more likely to turn more interest to the crypto domain. Before the coronavirus pandemic, one of the biggest advantages offered by the crypto industry was that it brings together people from around the globe and helps them to work with each other virtually. People working in crypto industry do not have to be in the same place to work together.

Crypto Exchange Demand as Per Compliance in EU

Regulatory bodies in the EU are looking to tighten their rules and policies on crypto exchanges and crypto assets this year. The crypto markets in the EU have also been hit hard by the coronavirus pandemic. For instance, the Bloomberg Galaxy Crypto Index fell by 58.5% between the months of February and March, which is much bigger than the 33.7% in the FTSE 100 during the same time period. 

These events will increase costs and will also change the demand for trading cryptocurrencies. All crypto exchanges will need to be adapting to both factors, but some small-scale exchanges, specifically those with less strong security procedures, may find these shocks too much to handle.

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How did Cryptocurrency emerge in trading

 

Cryptocurrency is the new buzzword in the digital sphere for a quite long time and many people around us believe that it emerged out of nowhere and became a driving force in the technological and financial world. However, this is not the case. Cryptocurrencies, aka digital coins, can make a paradigm shift to the way we deal with existing payment methods and since its inception, cryptocurrencies are evolving and becoming huge with each passing day. Cryptocurrencies with centralized exchange solutions, enable users to store and share digital currencies in a secured and highly protective environment.

In the meantime, Cryptocurrency is a relatively new medium of exchange in that it is a digital or virtual currency that leverages encryption to facilitate the transfer of funds. On the other hand, blockchain is a shared, digital public ledger on which transactions of cryptocurrencies are carried out. The two terms, Cryptocurrency and Blockchain, are used interchangeably because they share a very unique relation but they are not synonymous in any way. Blockchain is the medium on which Cryptocurrency is operated while Cryptocurrency, per se, is the means or instrument of exchange. In other words, Blockchain is the ecosystem that lays the foundation for Cryptocurrency related activities. Which means the latter cannot exist independent of the former. Blockchain, however, can operate as a separate and distinct entity since it has other industry applications apart from facilitating Cryptocurrencies.

The circumstances that led to the rise of Cryptocurrency is an interesting one. Several decades went into the realization of a finally viable digital currency. The noteworthy part of it all is that Cryptocurrency was nothing more than a concept for quite a long time. Digital currencies entered the domain of human interest with some early proponents in the 80s and 90s mooting the notion of a currency that departs from the institutionalized conventions of traditional fiat currency.

Then several attempts were made to realize the concept but they were to no avail until Satoshi Nakamoto entered the scene in the year 2008. The same year, a paper called Bitcoin – A Peer to Peer Electronic Cash System surfaced under the pseudonym of Satoshi Nakamoto. This signalled the birth of Bitcoin, the first viable digital currency, followed by the likes of Ethereum. Despite the limited number of takers in the initial years, Cryptocurrencies became a big hit with the financial world overtime.

In retrospect, the year 2009 marked the induction of Bitcoin into the blockchain ecosystem. For the first time, mining of Bitcoin took place. Bitcoin scaled a notch higher in the following year, that is, 2010, by acquiring a bona fide monetary value and becoming traded. As the narrative goes, a Bitcoin bluff swapped 10,000 Bitcoins for two pizzas and laid the foundation for a series of similar transactions that led to the mass reception of Cryptocurrencies as we know it. As such, with the inception of Bitcoin, the notion of a decentralized and encrypted currency gained more and more traction and materialized with the rise of alternative currencies, aka altcoin, each one better than the previous. And we can say that the integration of Cryptocurrency into the financial world is nearing maturity.

The second generation of cryptocurrency

In the initial days, some people came up with cryptocurrencies other than bitcoin which were doing the same thing as bitcoin did, but in some different ways.  However, technology giants came to realize that the Blockchain technology has more potential and the versatility than that and can be used to create centralized cryptocurrency exchanges to validate and mediate other Peer-to-Peer transactions.

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Crypto Legal Compliance and Taxation Outlook of Africa

 

Introduction

The government of Africa has been a bit slow with the adoption of cryptocurrencies. Maybe it is due to the reasons like good attentions of protecting their people or having a crop of old leaders who have not to envision a future without paper cash, Africa is now slowly picking up the pace towards the era of Cryptocurrency.

The majority of the younger generation of the popular countries of Africa, like Nigeria, Kenya, Egypt, and South Africa, is investing their time in the Bitcoin Technology, disregarding the regulation skepticism on the continent.

The Central Bank of Nigeria has kept itself away from the Bitcoin movements twice and even warned the citizens that bitcoin investments had no legal intention. Furthermore, there seem to be no crypto exchanges established in Botswana. Bitcoin trading is also restricted to private Facebook and Whatsapp groups. The Bank of Gana also announced that use and trading Cryptocurrency is illegal yet or it is not considered as a lawful form of currency in the country. However, the Governor of the Bank of Ghana has issued Payment Systems and Services Bill, which will enable the regulation of Cryptocurrency in the future.

Nonetheless, the trading of Bitcoin is quite booming in Nigeria. Many people believe that this boom in Bitcoin trading is brought by a busted online Ponzi scheme, named MMM scheme. This scheme brought trading into the mainstream with a lot of ease.

The Central Bank of Nigeria first reacted to virtual currencies in January 2017 and warned the citizens to handle cryptocurrencies at their own risks. Some of the people misunderstood the warning as a ban, but officials of the Bank have since declared that they cannot put a full stop on the usage of Bitcoin because it is quite evident that they are not within their control.

South Africa, Ghana, and Nigeria are amongst those countries that have managed to count amongst the top 10 ranked names for Bitcoin technology across the globe.

In the following section, we have discussed the Cryptocurrency regulation outlook in these African countries along with a few others. Let’s get started!

South Africa

The government in South Africa is less strict regarding the trading of the Bitcoin. The South African Revenue Services has been discovering many ways in which Cryptocurrency investments can be appropriately taxed. In April 2018, SARS (South African Revenue Services) stated that the citizens of South Africa should reveal their income derived from Cryptocurrency investments as an integral part of their capital profit statement.

SARS also argued that cryptocurrencies must be taxed based on the intention with which they are being held. Therefore, profits and losses regarding cryptocurrencies can be widely categorized as having three major outcomes that are mentioned as follows:

• Investors trading cryptocurrencies on exchanges will be liable for the capital profits earned during investments. 

• A Cryptocurrency can be obtained via mining but until the newly obtained Cryptocurrency is exchanged or sold for cash, it will be managed by the miner as trading stock.

• The normal barter transaction regulations will apply where services are exchanged for cryptocurrencies.

In 2017, The South Africa Reserve Bank (SARB) has launched a project (Project Khokha) to discover Blockchain – the distributed ledger technology. During early 2018, the bank finished a 14-week proof-of-concept on the blockchain. This managed to settle everyday 70,000 payment transactions of the country within 2 hours while taking an average of 1 to 2 seconds of every transaction.

Ghana

In January 2018, the Bank of Ghana declared that buying and selling Bitcoin in the Country is not yet lawful as it isn’t a recognized lawful tender. The BOG also wants to notify the citizens that these activities in digital currency are licensed currently under the Payments System Act 2003. Currently, the Bank is investing a lot of resources to modify further the settlements and payments system, including e-form of money and to launch cybersecurity guidelines to protect online financial transactions.

In this country, more than 80 percent of landlords lack official title deeds with Ghana’s Land of Commission and most of the land is being held via verbal agreements. In order to solve this issue, start-up Bitland of Ghana is making use of blockchain technology to mirror official title deeds, elevating the integrity of the land records that are held by the Land Commission of Ghana.

Kenya

Digital currencies remain booming in Kenya. The law of Kenya does not have a regulatory framework for a blockchain. However, the National Land Commission of Kenya has welcomed the idea of blockchain network usage in creating transparency of land ownership, since it will boost fraudulent sales of land and blur over the title to land.

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