The rise so far Bitcoin has seen a significant rise this year, with its price increasing by more than 80%. This increase has been driven by a number of factors, including the rise in institutional adoption, the growth of the DeFi sector, and ongoing inflation concerns, which have led many investors to view Bitcoin as … Read more
The foundations of quantum computers and their potential impact on technology Quantum computers use the laws of quantum mechanics to perform computations, which allow them to achieve much higher computational performance than conventional computers. This is because quantum bits, known as qubits, can represent multiple states at once, not just binary 0 or 1 values … Read more
Cryptocurrencies, especially Bitcoin, generate significant energy consumption in the mining process, which raises concerns about environmental sustainability. Bitcoin mining is fundamentally based on solving mathematical problems, which requires enormous computational power and energy. Solving the puzzle, i.e. 'mining', ensures the authenticity and security of the blockchain, but the process consumes a lot of energy. According … Read more
The anonymity and decentralisation provided by cryptocurrencies is a major challenge in the fight against money laundering. However, there are strategies and tools that can help regulators, financial institutions and cryptocurrency communities to prevent money laundering: Application of KYC/AML Rules The application of Know Your Customer (KYC) and Anti-Money Laundering (AML) rules is critical in … Read more
Money laundering techniques involving cryptocurrencies are often complex and constantly evolving. Some of them include: Mixing and Tumbling These services mix users' transactions with other users' transactions to make it harder to track money. The mixed transactions are returned to the user's wallet as "pure" cryptocurrency, the origin of which is difficult to trace. P2P … Read more
Money laundering is the "cleansing" of money from illegal activities in such a way that the origin of the money cannot be traced. Cryptocurrencies, such as Bitcoin and others, have become popular among money launderers because of certain features that make it easier to channel illicit money through the traditional financial system. Anonymity One of … Read more
The cryptocurrency sector is constantly evolving and future trends will clearly influence the regulatory environment. Three areas where the biggest changes are expected are: central bank digital currencies (CBDCs), anti-money laundering and Know Your Customer (KYC)/Anti-Money Laundering (AML) regulations. CBDCs CBDCs are digital currencies issued by central banks and based on blockchain technology or other … Read more
DeFi (Decentralised Funding) and ICO / IEO (Initial Coin Offering / Initial Exchange Offering) have seen explosive growth in the cryptocurrency sector in recent years, but have also raised a number of regulatory issues and challenges. DeFi Regulation The decentralised nature of DeFi applications means that there are no central entities that can be easily … Read more
The advent of blockchain technology has brought new challenges for regulators and data protection experts. The unique features of blockchain that address privacy issues – such as transaction traceability, data finality and decentralised structure – can have both positive and negative implications for personal freedom and data protection. Data protection challenges The main privacy challenge … Read more
Cryptocurrency regulation faces significant challenges and opportunities worldwide. The novelty of the technology, its rapid development and the principle of decentralisation present a number of difficulties for traditional regulatory frameworks. Challenges Technological interpretation The technological complexity of cryptocurrencies poses significant challenges for regulators. Understanding how the blockchain works and keeping up with technological developments is … Read more