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Cryptocurrencies

Virtual currency exchanges are on the rise, report shows

Tuesday 10 July 2018 | 10:30 AM CET

Regulation uncertainty around ICOs and an explosive growth in virtual currency exchanges are some of the key 2018 mid-year insights into the crypto space, according to IdentityMind.

IdentityMind’s insights are based on conversations and consultations with over 650 global companies conducting ICOs in 2018. Moreover, the company has also spoken with over 65 companies launching a virtual currency exchange in 2018 and works today with over 25 exchanges worldwide.

Regarding ICOs, the company has found that regulation uncertainty continues - where Bitcoin, the world’s first virtual currency, was several years ago, is where ICOs are today, lacking clear guidance in the US and internationally. The Securities and Exchange Commission (SEC) still has not decided whether cryptocurrencies are securities/utility tokens, while FinCEN’s March 2013 guidance states that a currency, virtual or not, that is exchanged for another currency, is a Money Service Business (MSB).

When it comes to virtual currency exchanges, there is tremendous growth, and while smaller players are hard-pressed to go into larger and established markets, the large players give it a go, hoping to find efficiencies due to their size and ability to subsidize losses in the meantime. For example, BitFlyer and Huobi going to the US, Coinbase is going to Japan and Binance investing in Bermuda and opening an exchange in Uganda.

IdentityMind has assisted more than 165 clients conduct an initial coin offering (ICO) or security token (STO) offering. Moreover, the company provides a SaaS platform that builds, maintains and analyses digital identities worldwide, allowing companies to carry out identity proofing, risk-based authentication, regulatory identification, and to detect and prevent identity fraud. For more information about IdentityMind, please check out a detailed profile in our web fraud & e-identity company database.

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