BTC Wires: There is no denying the fact that there are a bunch of cryptocurrency projects which are a tad bit better than scams. Some of the projects do run on the legal channels, but sadly not all.
The scams related to cryptocurrency grabs the attention almost immediately. But what about the scams that go unnoticed, yes we are talking about the ever increasing and complex know-your-customers (KYC) and anti-money laundering practices (AML) required to be complied by crypto startups and newly formed Fintech companies for dealing with customers in the initial stage of the transaction.
The KYC and AML practices have soaked in many more billions than all the ICO(Initial Coin Scam) put together. The aforesaid practices are put into use almost everywhere as a global surveillance apparatus. This system can be one of the befitting reason for poverty and the slow death of innovation. It also serves as an excuse for the banking to the system to abstain from the competition.
The direct impact of such compliance in terms of value for financial companies hovers around billion every year, but this is only a partial picture. In fact, the total figure which is drained out from the system cannot be measured. The reason behind this is that we will never know the numbers relating to the value of innovative projects which could never see the light of the day owing to the current compliance regime.
Even in crypto-world, there have been various crypto startups which faced a premature death as they couldn’t keep up with the banking ordeals. Well, the impact of such regimes is not limited to the world of cryptocurrency, as various startups crumbled due to financial burdens which resulted from heavy spending on lawyers. Also, there were several Fintech companies, which failed to operate as they could not procure licensing.