The future of virtual currency platforms under fire as challenges continue to plague the industry
By Quantum Capital Fund
Since the start of the information age in 2000, the large majority of the day to day life of users has been moved to the internet. Banking can be done online as well as shopping. It makes sense then that the next step in this progression would be the growth of online currency trading as well as the growing importance of virtual currencies.
However, a number of incidents have threatened the future of the development of this sector. Bitcoin was plagued by security breaches and now US prosecutors have accused an online currency exchange of laundering up to $6-billion which has allegedly been used to fund criminal activities.
Reuters reports that prosecutors have filed an indictment against the operators of digital currency exchange Liberty Reserve, accusing the Costa Rica-based company of helping criminals around the world launder more than $6 billion in illicit funds linked to everything from child pornography to software for hacking into banks. "Liberty Reserve has emerged as one of the principal means by which cyber-criminals around the world distribute, store and launder the proceeds of their illegal activity," according to the indictment filed in U.S. District Court for the Southern District of New York.
This shows that there is growing urgency for some form of regulation in the sector, despite the fact that a major drawcard to online trading platforms is the lack of over regulation. If online trading platforms are the future of the industry, specific protocols and guidelines need to be established so that both users and governments are comfortable enough that the online forums are not being compromised or being used as fronts to fund illegal activities.
There is a fine line between over regulation and initiating programs which will clean up the industry. Despite the fact that the public harbors negative feelings towards over regulation, there shouldn’t be any resentment to visible measures which are initiated to clean up the industry.