Recent concerns expressed by Bill Gates about cryptocurrencies ignore one crucial fact. By tarring Bitcoin and all the alt coins with the same brush, Gates fails to appreciate that one or two of them, of which DasCoin (The Currency of Trust) is of course a salient example, very much do not rely on anonymity.
In case you missed the story, the Microsoft co-founder and philanthropist has been in the news for linking crypto to drug-related deaths, general criminality, terrorists and tax evaders. He says they all benefit from the anonymous transactions they allow.
“The main feature of cryptocurrencies is their anonymity. I don’t think this is a good thing. The government’s ability to find money laundering and tax evasion and terrorist funding is a good thing,” said Gates.
But here’s the thing. By implementing bank-standard KYC identification rules, we know that at NetLeaders we strive to be compliant in every jurisdiction. Similary, our AML terms of engagement prevent criminals from entering our system. It really is that simple.
Here’s a quick refresher:
- KYC stands for Know Your Customer. This is the banking-standard process which verifies a person’s identity. By operating KYC we may request copies of document(s) that confirm your identity. Through this method, we safeguard DasCoin’s position as the Currency of Trust.
- AML stands for Anti-Money Laundering. It applies to any of the procedures, laws and regulations designed to stop the practice of generating income through illegal actions. At NetLeaders, we are committed to doing everything we can to be compliant with the rules of AML.
Gates also said that because cryptocurrency allows anonymous trading in drugs online, it’s “a rare technology that has caused deaths in a fairly direct way.”
Bitcoin, the most popular and oldest digital currency, sprang up in 2009 and grew in popularity partly due to its ability to intentionally avoid the prying eyes of law enforcement and government officials. That reputation grew thanks to it being the sole currency accepted on Silk Road, the Dark Web marketplace for drugs and other illicit goods and services that was shuttered by the FBI in 2013.
However, recognising the groundwork put in by DasCoin and others, Charles Hayter, CEO of the digital currency information firm CryptoCompare, insists cryptocurrencies have evolved. He called Gates’ comments “true to an extent but slightly naive.”
Hayter continued: “Naturally, cryptocurrencies were given their first utility in the dark markets. That trend is declining with the majority of business now legitimate and increasingly so. The dollar has had its fair share of direct deaths too and will continue to do so. We have to look beyond these initial trials and tribulations towards the potential for a dimensionless value transfer system.” (Source: CNET)
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