A renowned financial services authority by the name of Seychelles collaborated with the finance ministry for a massive project. It was later on learned that the collaboration was to conduct a thorough analysis regarding a variety of crypto trading platforms and how the ins and outs of their licensing. According to a variety of reputable reports, this move made by the financial services authority was made due to an increasing number of scams in the international crypto market.
Anybody who has been following the crypto world for a while would be well aware of the fact that there have been plenty of scams and fraudulent activities in the world of crypto. A renowned crypto trading platform known as Poli Network, in particular, became victim of a vicious hack that caused the platform to lose more than $600 million. Unfortunately, however, this was not all, as there have been plenty of incidents before that, and since then that have plagued the crypto world.
All of these hacks and scams are also a major reason why a large number of people show hesitation in making crypto-related investments. Needless to say, the investigations being held by Seychelles will be conducted on an international level in order to steer clear of these issues in the future. According to recent reports, a massive bitcoin scam occurred very recently and people ended up losing a great deal of money because of it.
Fortunately, however, the bitcoin scam being talked about is being investigated thoroughly and there is a good chance that investigators will get to the bottom of the problem soon. Due to the rising issues crypto platforms and investors have been facing recently, experts have been claiming that opting for licensing would be a good idea. While there is no denying that licensing crypto exchanges and platforms could be helpful, it may also have a few noticeable cons.
One of the biggest probable cons of introducing crypto platform licensing is that it could lead to a higher amount of risks, ultimately ruining reputations. While this may not happen with every platform, it is still a massive risk that is worth considering. Higher ups in the world of crypto believe that a massive problem regarding crypto is that you must take a stance and stand by it. Needless to say, taking steps like these can be quite difficult as there will always be opposition opposing the decision.
With all of that said, in case the policy of licensing crypto trading organizations does get adopted, there could be a significant reduction in illicit activities. Needless to say, that is precisely what people in the crypto world want these days.