Infrastructure for in-depth KYC and Banking services 3.0 growing but watch out for Crypto Dragons

Infrastructure for in-depth KYC and Banking services 3.0 growing but watch out for Crypto Dragons

In order for institutions to be more engaged with Digital Assets they are going to need:

• Custody solutions
• Banking services
• Insurance provision
• Regulated exchanges

It is increasingly becoming apparent that there is a clear divided between what has been issued by organisations raising capital using Initial Coin Offerings (ICO) which had scant regulation and what is now increasingly being issued – Security Token Offerings (STOs) which are subject to regulation. ICOs have created 5,522 tokens and up to October 2018 had raised over $20 billion with a further$700 million from Oct 2019 to Sept 2019 be$ xxx in capital with the biggest issue being EOS that raised over $4 billion. The ICO market was like the ‘Wild West’, and no surprise the ICO frenzy attracted its fair share of cowboys and questionable projects and ventures.

However, STOs (unlike ICOs) are typically backed by real assets such as property, bonds, equity, commodities, mutual funds etc and as a result they are subject to the regulatory controls in terms of how they raise capital and their management on an on-going basis. While the burden of regulation has discouraged some, STOs are attracting regulated professional asset management organisations such as pension and mutual fund managers, banks, family offices and even governments.

Finally there is an increasing number of banks that are looking to target the growing opportunities in the Crypto/Digital sector such as SEBA, SYGUM, Silvergate, Falcon Frink,  and Clearbank and DAG Global here in the UK. There are inevitably going to be dispute and legal challenges and while some will be chasing the next Bitcoin Unicorn there will no doubt be a few ‘Crypto Dragons’ to be wary of, carrying out nefarious activities

The challenges of professional due diligence and KYC in Digital Asset sector are being addressed by traditional organisations such as Alaco.For example, they are being approached by banks who need to be able to verify potential new banking clients such as how has a 26 year has made $25 million from Cryptocurrencies. Alaco with their international forensic network of experts are able to help verify or not, the source of funds, thus giving the bank comfort or not, as to how the $25 million has been accumulated.

DAG Global discussed the opportunities for banking, Alaco presented on forensic due diligence and Dr Stephen Castell talked through the dangers of Crypto Dragons at Teamblockchain’s September Meetup.

Time to kick us off @jonnyfry175 @TeamBlockchain thank you to our sponsor this evening @LewisSilkin for hosting and contributing pic.twitter.com/Z8szBJUmAj

— Thomas Power (@thomaspower) September 3, 2019

courtesy of Thomas Power,  has a selection of videos and images from the September 2019 MeetUp highlighting some of key topics covered.

For copies of the speakers presentations used during the September MeetUp, if interested in speaking at future events or details about our weekly analysis on the Blockchain and Digital Assets sectors? -?#DigitalBytes  email: [email protected]

TeamBlockchain’s next Meetup will be 15/101/9: to register to attend https://www.meetup.com/ICO-Meetup-London/events/262637376/

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