Topic: Securing the Future of Crypto and Blockchain: A Look at Security and Compliance (Read 102 times)

I think the author, like most people who work in banking and compliance, still have yet to overcome the barrier of understanding what Bitcoin is. I know this because of my partner who works in compliance and the questions I see them field demonstrates how little they understand about Bitcoin.

So they're not wrong with their view of compliance from the perspective of service providers, as in, companies, individuals (business entities) in regulated jurisdictions. These are, for example, wallet providers, account providers, exchangers, transmitters, payment providers and settlers.

What they don't get is that the network itself can't be forced to comply.

I usually use the internet as a comparison. You can get ISPs, email providers, telephony services to comply. You can't get internet surfers and "the internet" itself to. Regulators and states can "legitimise" and "regulate" Bitcoin only to the extent they can "legitimise" and "regulate" the internet.

Exchanges is not a vulnerability of Bitcoin but of a third party service which people for some reason trust enough to hold their bitcoins.
Wallets are vulnerable, which is shy we should use an open source wallet which is non custodian.

You do not need the regulators or the public to consider it legitimate, you only need to convince Bitcoiners who use it and has seen the value in it.

Bitcoin does not change much, it still very much operates now the same way it did when it was just launched and it does not need to fit into the regulatory standards of the government.
And you do not need to copy the hashtags from the article along with the write up.

- Jay -

Ethereum is neither immutable nor is it as decentralized as Bitcoin. If we go back to the DAO hack of several years ago, we'll see that when the tokens of important Ethereum Foundation members got stolen, the network didn't have any problems to revert back to an older state and change the history. That doesn't speak for immutability.

On the other hand, huge hacks have happened to crypto exchanges that have led to million/billion dollar losses for bitcoin holders. No forks happened that changed that. In both cases, the networks performed and worked as they should have, but only one blockchain changed its history to save the money of certain individuals.   

Continued adoption is what will force governments to try to put in place a clear regulatory framework for identity verification and anti-money laundering laws. Serious moves in the United States did not appear until after many investors expressed their annoyance at losing their money due to the collapse of Luna.

what bothers governments is that the less control they have over the money, the less taxes will be and the options will increase for the individual to have an independent decision, so there are several arguments. At the beginning, it was saying that Bitcoin is a bad currency and only criminals use it, and then Bitcoin became a high-risk investment, and now Bitcoin is bad if it is not from a reliable platform, so the problem of governments is not with Bitcoin, but rather with their inability to control.

this is very good topic to know why KYC in bitcoin is useless Why KYC is extremely dangerous – and useless

The mistake to mix Bitcoin and compliance. An oxymoron to me.
Interesting opinion, though.

A real question:

What are the people asking for?
Either a decentralized currency independent of states, or just a virtual currency 'not so free'?

I choose the first camp and that's what made me jump on the BTC train. If it's to get worms on my ass, I'm not interested.
BTC doesn't need that and it was designed so you don't need it. To please the regulators or not, it's not our problem but theirs. Crypto was created precisely because we were shouting at the regulators. We complain, so they gave us a solution. Making sure we are compliant is like letting the wolf into the house. I didn't invite regulators to the crypto party.

We can notice that the ones asking for compliance are the companies (so that they can make money on us, ofc: follow the money). The user doesn't ask for it. Well, to be honest, except people who have been telling us for years that this will encourage the adoption of cryptos. Bullshit.

Bitcoin didn't need regulation for 1 decade to be adopted little by little. So what?

Besides, among the Joe's who say this, they are usually people who do nothing but buy/sell on their favourite CEX, so of course they are happy with the regulations because it benefits them (more or less). But when it comes to paying taxes on their earnings, they start arguing that it's not fair, if we listen to them, it's almost theft from their government. LOL. You asked regulations and compliance, so here it is.

Greetings, fellow blockchain enthusiasts!
As we delve deeper into the world of crypto and blockchain technology, it's crucial to address two critical aspects that shape the industry's future: security and compliance. Let's explore the current state of security and compliance in the crypto space and discuss their significance in ensuring the sustainable growth of this revolutionary ecosystem.

The Foundation of Security:

At the heart of the blockchain lies a robust security foundation. The decentralized and immutable nature of blockchain networks, such as Bitcoin and Ethereum, has proven resilient against attacks. However, we must acknowledge that security vulnerabilities can still emerge at various levels, including exchanges, wallets, and smart contracts.

Recent incidents have highlighted the importance of fortifying crypto exchanges and wallets with state-of-the-art security measures. Multi-factor authentication, encryption, and cold storage of private keys are some of the practices employed to protect user assets and data.

Building Trust through Compliance:

The regulatory landscape surrounding cryptocurrencies and blockchain technology remains dynamic and diverse across different jurisdictions. Some countries have embraced the innovation, while others grapple with formulating appropriate regulations. In this context, compliance is a vital factor in building trust and legitimacy in the eyes of regulators and the public.

Compliance efforts extend to areas like Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements. Adhering to these standards helps prevent illicit activities, ensures user protection, and fosters responsible use of crypto assets.

Balancing Security and Compliance:

As we navigate this exciting yet evolving industry, striking a balance between security and compliance becomes paramount. While we strengthen the technology's inherent security, we must also uphold transparency and cooperation with regulatory authorities.

Developers and service providers play a crucial role in implementing security best practices, conducting regular audits, and ensuring that their solutions comply with relevant regulations. This approach fosters a culture of responsibility and accountability in the crypto space.

Conclusion:

As we journey through the ever-changing landscape of crypto and blockchain, let's recognize the significance of security and compliance. The blockchain's inherent security advantages offer a strong foundation, while compliance efforts strengthen trust and acceptance.

Together, we can advance the industry responsibly, ensuring a secure and compliant ecosystem that welcomes innovation and positive impact. Let's embrace the opportunities and challenges before us, as we secure the future of crypto and blockchain, shaping a revolutionary landscape for generations to come.

Share your thoughts on security and compliance in the crypto space! How do you envision a balanced and secure future for the industry?

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