Trading volumes on exchange-escrowed peer-to-peer (P2P) cryptocurrency trading platforms in India are rising rapidly amid the banking ban by the country’s central bank. “Indians are warming up to P2P in amazing ways,” the CEO of a local crypto exchange told news.Bitcoin.com. Several other exchanges competing in the same space are seeing similar responses from their users.
Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space
P2P Trading Volumes Growing Rapidly
Indian cryptocurrency exchanges that offer P2P services are experiencing rapid growth in trading volumes despite the cryptocurrency banking ban by the country’s central bank, the Reserve Bank of India (RBI).
The CEO of Indian crypto exchange Wazirx, Nischal Shetty, told news.Bitcoin.com that “In a bear market with no banking, Indians are warming up to P2P in amazing ways.” Wazirx launched its exchange-escrowed P2P service on July 10, a week before the RBI ban took effect.
India’s central bank has banned financial institutions from providing services to crypto businesses. As the country’s supreme court continues to postpone hearing the petitions against the ban, a growing number of Indian exchanges have implemented their own solutions to the banking problem such as using P2P trading and launching cryptocurrency ATMs.
Shetty shared with news.Bitcoin.com:
P2P is working great for Wazirx. It’s helping us increase our daily trading volumes as well. In fact a few days ago we hit 100 BTC in daily trading volume for the first time … we’ve crossed over $5M in P2P in the 3 months since we’ve gone live.
The exchange revealed at the end of September that its trading volumes had grown 35 percent in the past few months, consistently reaching 50 BTC in daily trading volumes during the month.
Some More P2P Offerings
The exchange-escrowed P2P option has become a popular way for traders in India to cash out their coins. Recently, crypto exchange Instashift conducted a survey of its users and found that the majority of 50 respondents prefer to cash out their cryptocurrencies using P2P services. Instashift offers the trading of over 80 cryptocurrencies. With a community of over 900 members using its P2P platform, the exchange told news.Bitcoin.com, “We are clocking approximately around 2-5 million INR [$27,194 – $67,985] per week in India & our volumes are looking promising in Canada & Nigeria as well.”
Coindcx also allows its users to convert over 80 cryptocurrencies into the Indian rupee. Its P2P platform Dcxinsta allows users to buy cryptocurrencies “instantly with INR … in less than 60 seconds,” according to the exchange’s website. On Thursday, Coindcx announced that “INR open order book” is now live on the exchange so users can now “place limit orders for trading in INR and see a complete order book using their existing INR wallets.”
The CEO of Coindcx, Sumit Gupta, explained to news.Bitcoin.com that the “Minimum buy or sell amount for any user is Rs 10. (approx. 15 cents)” on his exchange, emphasizing that “every Indian can now invest in crypto.” He further revealed that on his P2P platform:
We’re getting a phenomenal response from users with average no. of orders being more than 10 per Dcxinsta user.
Disclaimer: Bitcoin.com does not endorse or support claims made by exchanges in this article. None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products or companies. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
What do you think of the growing popularity of P2P trading in India amid the RBI ban? Let us know in the comments section below.
Images courtesy of Shutterstock, Wazirx, Instashift, and Coindcx.
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It’s been a week for stablecoin stories in the crypto sphere, and while we’d like to have started the weekend on a different tack, Huobi’s effort was too intriguing not to share. We’ll also detail the latest cryptocurrency lending options in Saturday’s edition of The Daily and consider a topical Halloween costume for bitcoiners.
Also read: Bitcoin Cash Merchant Directory Marco Coino Surpasses 500 Listings
Stablecoins Get Meta With HUSD
Stablecoin mania is spreading, and now it’s starting to get meta. Huobi, the world’s second-largest exchange by trading volume, has announced the launch of HUSD. This isn’t technically a stablecoin though: it’s an integrated solution that contains multiple stablecoins. The aim is to save traders from having to choose between multiple pegged coins. Many exchanges, Huobi included, now list numerous stablecoins which are often paired against one another.
Huobi explained: “When you deposit any kind of stablecoins, they will be shown as HUSD in your account. You may withdraw any kind of stablecoin … For example, when you deposit 1 PAX, it will show as 1 HUSD in your account, and you can withdraw 1 TUSD.” Given that stablecoins can generally be relied on to adhere to the U.S. dollar, the solution ought to save hassle for Huobi and its customers alike. Initially, PAX, TUSD, USDC, and GUSD will be incorporated under the HUSD umbrella. The Singapore-based exchange finished:
We look forward to more stablecoins being involved in the HUSD system. Concurrently, we will evaluate the existing stablecoins in the HUSD system on a real time basis, if the stablecoin doesn’t meet the corresponding risk control standard, we will remove it.
Salt Expands Cryptocurrency Loans
The number of cryptocurrencies that can be used as collateral is growing. “Very Lending, Much Liquidity,” read the email Salt used to introduce its latest altcoin lending option. Cryptocurrency users can now deploy DOGE as collateral, along with BTC, ETH and LTC, and obtain a loan starting from $5,000. Crypto-fiat loans can be obtained for between one and 36 months, with an APR that starts at around six percent.
Crypto Twitter Goes NPC
The non-player character (NPC) meme has been inescapable this week, and it only seems fitting to sign off with crypto Twitter’s take. Cryptocurrency factions never need much prompting to dehumanize and goad one another, and it was inevitable that the NPC meme, which depicts opponents as programmatic non-entities, would catch on. One Twitter user has proposed a bitcoin-themed Halloween costume, accompanied by the sort of stock insult that an NPC might utter:
Meanwhile, a visitor to Ripple’s headquarters joked that some NPC programming may have been taking place:
😂 Check out the sign in the toilets of Ripple Labs. NCP indoctrination:ifworksFor(Ripple) run(brainwash.exe) pic.twitter.com/AWaJI2WkFF
— RideTheLightning⚡️ (@MediumSqueeze) October 19, 2018
What are your thoughts on today’s news tidbits as featured in The Daily? Let us know in the comments section below.
Images courtesy of Shutterstock, Huobi, Salt, and Twitter.
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The pass rate for the exam developed by the Maltese government for financial services practitioners seeking to obtain cryptocurrency agent certification is reportedly only 39 percent. The exam is part of the requirements mandated by the country’s newly established Virtual Financial Assets Act.
Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space
Low Pass Rate
Under Malta’s Virtual Financial Assets (VFA) Act, practitioners who wish to act as agents in the field that includes cryptocurrencies and initial coin offerings (ICOs) must successfully complete a short training course and pass an exam.
Noting that the first exam took place in September, the Times of Malta reported on Thursday:
Nearly two-thirds of those applying for cryptocurrency agent certification failed the official assessment process despite last-second changes intended to boost the pass rate.
The exam was set by the Malta Financial Services Authority (MFSA) and administered by the Institute of Financial Services Practitioners.
The news outlet quoted sources revealing that about 250 lawyers, accountants, and auditors took the exam, which consisted of a series of multiple choice questions. “Once the exam papers were graded, it became clear the pass rate was extremely low,” the publication conveyed, adding that “Even after the changes the pass rate was just 39 percent.”
According to the MFSA’s consultation document for VFA service providers, “any person who is providing a VFA service … shall within twelve months apply for a license with the competent authority in terms of Article 14 to the Act,” the CBS Group described.
The MFSA wrote, “It has also become evident that certain industry players are not sufficiently prepared to register as VFA agents.” The regulator, therefore, proposes a number of additional rules for them to comply. They include increasing the initial and ongoing capital requirements as well as regulatory fees. In addition, the MFSA proposes “introducing a rigorous competence assessment” and “a mandatory requirement for Continuous Professional Education.”
The Times of Malta elaborated, “The VFA Act is one of three new laws forming part of the government’s ‘Blockchain Island’ strategy and which seek to regulate the blockchain and cryptocurrency sector,” adding that “It will enter into force in November.” Other than trading cryptocurrencies and issuing ICOs, the publication explained:
Companies looking to provide other virtual financial asset services, such as portfolio management or investment advice, also need an agent to apply for a licence.
What do you think of the low pass rate for the Maltese cryptocurrency agent certification exam? Let us know in the comments section below.
Images courtesy of Shutterstock and MFSA.
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The head of Russia’s central bank, Elvira Nabiullina, believes that “crypto fever” is beginning to diminish, major Russian news agency RIA Novosti reports Thursday, Oct. 18.Nabiullina, while speaking at finance innovation forum Finnopolis held in the South Russian city of Sochi, said that she believes cryptocurrencies and blockchain are now being treated more rationally:”Fortunately, the crypto fever has begun to diminish. Technologies such as blockchain have inspired great enthusiasm, but now, as far as we can see, the approach to them is more sober.”The central bank head also noted that entrepreneurs are now seeking ways to implement blockchain in their business. For instance, Nabiullina mentioned Initial Coin Offerings (ICO), considering them to be “a perfect method to raise funds.” However, she added that the fundraising method is poorly protected from fraud.As a conclusion, Nabiullina noted that digital financial technologies have finally gained mass adoption, explaining:“Digital finance is no longer the world of the advanced consumer. It is the world of the mass consumer.”Nabiullina is well-known for her gloomy approach to cryptocurrencies and the technologies behind them. Back in 2017, she compared the international interest in cryptocurrencies to “gold fever.”This year, Nabiullina called coins, “money surrogates,” stating they would not be featured on Russian exchanges. Furthermore, she has said that the central bank was “categorically against” regulating cryptocurrency or equating it with foreign currency.Despite the conservative stance taken by the central bank, major Russian banks are reportedly interested in working with crypto assets. According to local sources familiar with the matter, representatives from Russian banks even organized a private round-table to learn more about crypto-related legislation in Japan, Luxembourg, and Singapore and how to adapt it to the Russian space.As Cointelegraph previously wrote in a review of the current legal situation for crypto in Russia, the country is struggling to pass legislation for cryptocurrencies.The latest draft bill is rumored to eliminate a definition for “cryptocurrency,” while mining is defined as the “release of tokens to attract investment in capital.” In order to clarify the supposed contradictions in the existing bill, a lobby group, the Russian Union of Industrialists and Entrepreneurs (RSPP), has started working on an alternative crypto regulation draft. window.fbAsyncInit = function() FB.init( appId : ‘1922752334671725’, xfbml : true, version : ‘v2.9’ ); FB.AppEvents.logPageView(); ; (function(d, s, id) var js, fjs = d.getElementsByTagName(s); if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = “//connect.facebook.net/en_US/sdk.js”; fjs.parentNode.insertBefore(js, fjs); (document, ‘script’, ‘facebook-jssdk’)); !function(f,b,e,v,n,t,s) if(f.fbq)return;n=f.fbq=function()n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments); if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′; n.queue=;t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e); s.parentNode.insertBefore(t,s)(window,document,’script’, ‘https://connect.facebook.net/en_US/fbevents.js’); fbq(‘init’, ‘1922752334671725’); fbq(‘track’, ‘PageView’);
When you’re trading digital assets, speed matters — particularly so if you’re engaged in high-frequency trading, when every millisecond counts. Executing orders a fraction of a second ahead of the market can mean the difference between profit and loss. New data reveals which cryptocurrency exchanges are the fastest — and which are struggling to keep up.
Also read: Cypherpunk Essentials: A Beginner’s Guide to Crypto Privacy
Speed Analysis Shows SignificantVariation Between Platforms
Data provided by Deribit shows marked differences in the speed at which six leading cryptocurrency exchanges fulfill orders. The derivatives exchange looked at three major spot exchanges: Bitfinex, Binance and Coinbase. It also examined three major crypto derivatives exchanges: Bitmex, Okex and its own platform. It should be noted, however, that Deribit has an incentive to share its analysis, as it recorded the fastest order execution in tests.
The most liquid pair on each exchange was tested to determine the time it takes to add a limit order and execute a market order. These tests were repeated every minute for a number of weeks. Most of the exchanges that were tested failed to achieve either task in under 10 milliseconds for a majority of observations, with Okex faring the worst. Some exchanges recorded a significant number of instances where a transaction took longer than one second, with Bitmex scoring worst here.
Speed analysis for Bitmex
Order speed doesn’t normally concern retail investors, who aren’t reliant on split-second execution when buying and selling assets. However, it matters a lot to professional traders, particularly on Wall Street, and increasingly in the cryptocurrency markets, too. On derivatives exchanges such as Bitmex and Deribit, where cryptocurrencies such as BTC can be traded with up to 100x leverage, timing is everything. And for trading strategies dependent on a fast response to market news, order speed can prove crucial. Many financial brokers base their entire business model around high-frequency trading, relying on algorithmic trading aided by low latency, high speeds and high order-to-trade ratios.
Logarithmic results for all six exchanges tested
Derivatives Exchanges Are Quicker ThanTheir Conventional Counterparts
Deribit has invited interested parties to download its speed analysis data and methodology inspect it for themselves, to verify its findings. Describing its methodology, the platform wrote:
We measured the time from the initial request until the confirmation that the order had been placed. To compensate for network delays outside the control of the exchange, we recorded the latency for a trivial API request. The duration for these trivial requests was subtracted from the duration of the order requests and the remaining time is assumed to be the true executiontime for a request.
The exchange claimed that it conducted all of the tests on machines that were situated as close as possible to the exchanges in question. The results were as follows:
Binance’s average order execution delay was 37.2 milliseconds, with 0.1 percent of orders executed within 10 milliseconds and 1.1 percent taking longer than 1 second.
Bitfinex’s average order execution delay was 156 milliseconds, with 0 percent of orders executed within 10 milliseconds and 1.5 percent taking longer than 1 second.
Bitmex’s average order execution delay was 1.11 seconds, with 13.4 percent of orders executed within 10 milliseconds and 20.8 percent taking longer than 1 second.
Coinbase’s average order execution delay was 33.0 milliseconds, with 0.2 percent of orders executed within 10 milliseconds and 0.1 percent taking longer than 1 second.
Deribit’s average order execution delay was 6.1 milliseconds, with 89.6 percent of orders executed within 10 milliseconds and 0 percent taking longer than 1 second.
Okex’s average order execution delay was 127 milliseconds, with 0 percent of orders executed within 10 milliseconds and 0.2 percent taking longer than 1 second.
Speed analysis results for Deribit
Competition between exchanges is fierce, especially among those that offer the high risk and reward cocktail that is derivatives. While there’s a lot more to successful margin trading than speed, its significance is sure to grow as competition intensifies and traders are forced to fight for that all-important edge.
Do you think speed matters on derivatives exchanges such as Bitmex and Deribit? Let us know in the comments section below.
Images courtesy of Shutterstock.
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A Japanese taxation policy committee held a debate with the aim of simplifying cryptocurrency tax Wednesday, Oct. 17, Japanese daily news outlet Sankei News reports.Highlighting the complex tax filing regime currently in place for Japanese citizens, officials from the committee — which advises the government on policy — said there was a need to adjust the procedure to stimulate a more thorough reporting of cryptocurrency gains.“The environment should be adjusted so that tax returns can be simplified,” Sankei quotes the organization as saying.Japan has sought to future-proof its economy with policy regulations relating to cryptocurrency, which is seeing a boom locally as companies take advantage of complementary regulation.Taxation obligations, while complex, are also stringent, with consumers technically required to file a tax return on any annual gains over 200,000 yen ($1780), Sankei notes.As U.S. authorities previously warned while examining their own reporting difficulties, the number of consumers who file crypto returns is minimal, while the proportion who do so correctly is likely even lower.The U.S. has since seen dedicated tools appear to help investors file tax returns specifically geared to the country’s tax authority, the Internal Revenue Service (IRS). Japan, meanwhile, lacks a similar easily-available mechanism.In the future, officials said, the simplified regime should also allow for the easy calculation of cryptocurrency holdings as regards phenomena such as inheritance and donation tax.The system should “be able to grasp the asset price appropriately,” they added. window.fbAsyncInit = function() FB.init( appId : ‘1922752334671725’, xfbml : true, version : ‘v2.9’ ); FB.AppEvents.logPageView(); ; (function(d, s, id) var js, fjs = d.getElementsByTagName(s); if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = “//connect.facebook.net/en_US/sdk.js”; fjs.parentNode.insertBefore(js, fjs); (document, ‘script’, ‘facebook-jssdk’)); !function(f,b,e,v,n,t,s) if(f.fbq)return;n=f.fbq=function()n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments); if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′; n.queue=;t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e); s.parentNode.insertBefore(t,s)(window,document,’script’, ‘https://connect.facebook.net/en_US/fbevents.js’); fbq(‘init’, ‘1922752334671725’); fbq(‘track’, ‘PageView’);
The Japanese tax committee is looking for ways to simplify the tax reporting system for the current Crypto currency so that investors can accurately report their profits.
According to Sankei, this committee, leading taxation policy and advising the prime minister, held a general meeting on October 17th and discussed potential improvements in the process.
The committee is planning a new system to standardize tax reporting procedures and make it easier for taxpayers to calculate the benefits of selling digital assets on ordinary and other Crypto calls.
According to the report, the price of cryptocurrency on other platforms may vary, and the way to store historical transaction data on other platforms has not been standardized. Therefore, taxpayers may have difficulty submitting appropriate tax returns.
"Since there is a need to consider a framework other than taxation and business practices, we will hold small-scale expert meetings to listen to outside opinions and deepen debate," said Minoru Nakazato, Chairman of the Tax Commission. Proverb.
At present, the profit of selling cryptocurrencies in Japan belongs to "miscellaneous income". Tax rates between 15% and 55% apply, depending on actual income over 200,000 yen or $ 1800 a year.
As CoinDesk reported in June, Japanese lawmakers raised the issue of changing from the current classification to "separate taxation" despite the fact that the deputy government withdrew the offer at the time.
Editor's Note: The text of this article has been translated from Japanese.
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CoinDesk, a leader in block-chain news, is a media outlet that pursues the highest standards of journalism and adheres to strict editorial policies. CoinDesk is an independent operating subsidiary of the Digital Currency Group, which invests in cryptocurrencies and block-chain startups.
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G4S (LSE: GFS), a security services provider with operations in more than 90 countries, guards everything from cash transfers to nuclear power plants and prisons. The London-headquartered company has now started to offer cryptocurrency protection, according to a recent report.
Also Read: Majority of Crypto Assets Are Highly Centralized, Research Finds
Secure Vault Storage
The company, which has more than 560,000 employees throughout the world, announced on Wednesday that it has developed a new service providing high-security offline cryptocurrency storage, to help to protect assets from criminals and hackers. And the company is already providing the service to an unnamed European exchange, according to the Financial Times. It charges clients based on the number of different offline storage devices they want to use to store their private keys, and reportedly uses its own existing vaults for the service, rather than newly built facilities.
The company’s press statement confirmed that cryptocurrency exchanges are already turning to them for help. Dominic MacIver, senior risk analyst at G4S Risk Consulting, commented: “Our clients approach us to discuss solutions to their requirements because of G4S Cash Solutions’ experience in protecting high-value items and G4S Risk Consulting’s experience in developing bespoke solutions to complex challenges. Working with our clients, we are continuously applying their expert knowledge of crypto-assets and our best practice in physical security to a sector at the cutting edge of financial technology.”
Heavily Restricted Access
The service is said to be more secure then other methods because G4S takes the keys offline, breaks them up and stores them in high-security vaults. Moreover, access to the sites in which they are held is said to be heavily restricted, with multiple layers of security. Clients can only gain access when all of the pieces are combined with specific technology.
“Offline storage has become a more established and secure way of storing crypto-assets,” MacIver said. “At the same time, violent robberies and kidnappings in recent years have shown that the sector is still exposed to conventional criminal threats. In collaboration with our client, our security solution is built on a foundation of ‘vault storage.’ We not only take the assets offline, but break them up into fragments that are independently without value and store them securely in our high security vaults, out of reach of cyber criminals and armed robbers alike.”
What level of security should investors demand from exchanges? Share your thoughts in the comments section below.
Images courtesy of G4S, Ed Robinson/OneRedEye, Tom Parker/OneRedEye.
Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.
Cryptocurrency exchanges in some of Africa’s biggest bitcoin markets have been forced to rethink their security to thwart persistent attacks from hackers, a trend that has troubled trading platforms all around the world.
Also read: Cointext Launches Bitcoin Cash SMS Wallet in Argentina and Turkey
The Worst Yet to Come for African Exchanges
Exchanges in the African continent have been relatively unscathed, suffering scant losses amidst the $930 million that’s been stolen from global exchanges so far this year, according to data by U.S. cyber security firm Ciphertrace.
The most notable assault on investor funds in the continent of 1.2 billion people happened around March in South Africa. It wasn’t a cyber attack on an exchange, but rather a scam. Fraudsters at BTC Global, a supposed cryptocurrency investment firm, made off with about one billion rand ($80 million) after 28,000 South Africans succumbed to the false promise of incredibly high, quick returns on their investment, police said.
As thefts have stoked exchanges worldwide, some African platforms have woken up to the need to strengthen their security to safeguard investor funds. This is particularly crucial in a continent where cryptocurrency markets are populated by people who trade with a certain degree of ignorance in many cases, lured by the promise of quick riches. Incidents of fraud or stolen money can smear a market struggling to build confidence in the absence of regulatory oversight.
“We have noticed a number of attempts to breach our system but we have managed to maintain our defenses and we keep on learning,” Suleiman Murunga, chief executive officer at Ugandan exchange Coinpesa, told news.Bitcoin.com.
“We (now) use suspicious activity monitoring tools to track user behavior in order to spot bad actors,” he said, adding that the company, one of the biggest in the East African country, also uses two-factor authentication.
Murunga stated that only a small portion of investor funds held on the exchange are kept in a hot wallet, of the kind targeted by hackers. The bulk of the funds are held offline, in cold storage.
Don’t Blame the Trading Platform – Blame the User
When breaches occur, exchanges are not always to blame. Sometimes investors simply aren’t careful. There have been instances where attackers gained access to individual accounts on the Zimbabwean exchange Golix before its forced shutdown in May, taking advantage of email password vulnerabilities to facilitate transactions.
Although no money was stolen, the 23 affected users noticed some changes to their accounts such as the conversion of their cryptocurrencies and the acquisition of additional coins through U.S. dollar balances they held in their accounts. This is according to Golix, which now has a presence in seven African countries. Back then, the exchange didn’t ask investors for 2FA upon signing up.
In Nigeria, Africa’s biggest bitcoin market, where trades reached $260 million on just one exchange this year, the threat of cyber attacks is real. In 2016, the Ibadan-based Naira4dollar firm didn’t receive the $15,000 worth of BTC it had bought to replenish its wallets after an attacker hacked into the trading platform’s system.
Investors in Nigeria and Ghana also fell victim to a $50 million hack of the Blockchain.info wallet, allegedly by Ukrainian hacker group Coinhoarder earlier this year. In the streets of Lagos, scammers take on false identities, infiltrating exchanges and various social media platforms promising outrageously high returns.
David Ayala, chief executive officer of Nairaex, which has more than 100,000 customers on its books, said all digital coins on the Nigerian exchange are stored “securely offline with Bitgo industry standards of multi-sig wallet.”
“Our platform is developed using best practices from the financial sector to maintain users’ security. We have maintained a secured network architecture since launch and we run scheduled tests and checks on the system for reliability,” he detailed, in emailed responses.
Is a Foolproof Security System Possible?
Often, hackers and scammers are a step ahead of their targeted victims, increasing the risk of persistent attacks. But will African exchanges ever implement foolproof security systems, or something approaching that ideal? William Chui, a Zimbabwean cryptocurrency enthusiast and former VP at Golix, proposed “A ‘walk-in’ model, where users [enter a physical premises] to buy [cryptocurrency] and are served while they wait.” It’s a model that’s proven popular in other countries such as South Korea.
He conceded, however, “This is not scalable nor feasible with the internet and will prove to be too slow. I doubt we can get a foolproof, secure system, but the [aim] will be to minimize losses as much as possible.”
Chui recommends that exchanges “invest in a technical development department that will continually penetrate the website, and offer bounties for external developers to do the same … Store a larger percentage of clients’ funds in cold wallets.”
Pesamill Africa in Kenya has gone as far as adopting Australian cryptocurrency industry regulations as part of efforts to align with global best practice. “We have built an exchange that fosters both peer-to-peer and centralized transactions in a safe and secure manner,” Brian Ngugi, Pesamill chief executive, told news.Bitcoin.com.
Whatever the case, African exchanges are at a stage in their development that holds a lot of promise for the growth of cryptocurrency use on the continent. Regulators will eventually step in, as is happening elsewhere worldwide. This will occur, not only to regulate and claim tax, but to make the cryptocurrency space stronger and sustainable.
What do you think about the level of security at African digital currency exchanges? Let us know in the comments section below.
Images courtesy of Shutterstock.
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