Tag: cryptocurrency Page 1 of 2

The financial technology (fintech) industry has experienced rapid growth in recent years, revolutionizing traditional financial services and offering innovative solutions to consumers and businesses alike. However, with innovation comes the need for regulation to ensure consumer protection, financial stability, and market integrity. In this blog post, we’ll explore the evolving regulatory landscape of fintech and discuss how companies can navigate the legal complexities while driving innovation.

The Importance of Fintech Regulation

Fintech regulation aims to balance innovation with consumer protection and financial stability. As fintech companies leverage technologies such as artificial intelligence, blockchain, and data analytics to offer new financial products and services, regulators must adapt to keep pace with these developments and ensure that they meet the needs of consumers while mitigating potential risks.

Regulation provides a framework for fintech companies to operate within, promoting transparency, accountability, and trust in the financial system. It also helps protect consumers from fraud, abuse, and unfair practices, ensuring that they have access to safe and reliable financial products and services.

Key Regulatory Challenges

Navigating the regulatory landscape can be challenging for fintech companies, particularly startups and innovative firms. One of the main challenges is the lack of uniformity and consistency in regulations across different jurisdictions. Fintech companies often operate on a global scale, which means they must comply with multiple regulatory frameworks, each with its own requirements and standards.

Another challenge is the pace of technological innovation, which often outpaces the development of regulatory frameworks. Regulators must strike a delicate balance between fostering innovation and protecting consumers, which can be challenging in fast-moving industries such as fintech.

Regulatory Considerations for Fintech Companies

Fintech companies must take a proactive approach to regulatory compliance to navigate the legal landscape effectively. Here are some key considerations:

Stay Informed: Fintech companies must stay abreast of regulatory developments and changes in the legal landscape that may impact their operations. This includes monitoring regulatory announcements, industry publications, and legal updates from relevant authorities.
Engage with Regulators: Building positive relationships with regulators can help fintech companies navigate the regulatory landscape more effectively. Engaging with regulators early and transparently can help companies understand regulatory expectations, address concerns, and build trust with regulatory authorities.
Compliance by Design: Fintech companies should adopt a “compliance by design” approach, integrating regulatory compliance into their products and services from the outset. This includes conducting thorough risk assessments, implementing robust compliance policies and procedures, and embedding compliance controls into their technology systems and processes.
Partner with Compliance Experts: Fintech companies can benefit from partnering with compliance experts, such as legal advisors and regulatory consultants, who can provide guidance and support on navigating the regulatory landscape. These experts can help companies understand their regulatory obligations, assess compliance risks, and develop strategies for achieving compliance.

Conclusion

Fintech regulation plays a crucial role in shaping the future of financial services and ensuring that innovation occurs in a safe and responsible manner. Fintech companies must navigate the legal landscape effectively, balancing innovation with regulatory compliance to drive growth and success. By staying informed, engaging with regulators, adopting a compliance by design approach, and partnering with compliance experts, fintech companies can navigate the regulatory landscape with confidence and drive innovation in the financial industry.

FinTech Trends To Know About In 2024

By Jacob Parker-Bowles

On January 31, 2024

In FinTech, Jacob Parker-Bowles

The financial technology (FinTech) sector has been a catalyst for transformative changes in the way we manage, invest, and transact with money. As we embark on the journey through 2024, the FinTech landscape continues to evolve, promising innovations that will redefine the financial industry. In this article, we explore the key FinTech trends set to dominate and reshape the financial landscape in the year ahead.

Decentralized Finance (DeFi) 2.0: Decentralized Finance, or DeFi, has been a revolutionary force in the FinTech space, and 2024 is poised to witness the evolution of DeFi 2.0. As the ecosystem matures, DeFi platforms are expected to address scalability challenges, enhance security measures, and offer more sophisticated financial products. Smart contracts, lending protocols, and decentralized exchanges are likely to become more user-friendly, attracting a broader audience and fostering mainstream adoption.
Central Bank Digital Currencies (CBDCs) Take Center Stage: The concept of Central Bank Digital Currencies (CBDCs) has gained momentum, with several countries actively exploring and implementing their digital currencies. In 2024, we anticipate an acceleration in CBDC initiatives globally, marking a significant shift in the traditional financial landscape. These digital currencies, backed by central authorities, aim to streamline payments, enhance financial inclusion, and provide regulators with more control over monetary policies.
Integration of Artificial Intelligence (AI) and Machine Learning (ML): The marriage of FinTech and artificial intelligence is set to reach new heights in 2024. AI and ML algorithms will play a pivotal role in enhancing data analytics, risk management, fraud detection, and personalized financial services. Advanced predictive analytics will empower financial institutions to offer tailored solutions to individual users, providing a more seamless and efficient customer experience.
Rise of Embedded Finance: Embedded finance, the integration of financial services into non-financial platforms and applications, is gaining traction. In 2024, we can expect to see an increased collaboration between FinTech firms and non-financial businesses, such as e-commerce platforms, ride-sharing apps, and social media networks. This trend allows consumers to access financial services seamlessly within the applications they already use regularly, blurring the lines between traditional banking and everyday activities.
Sustainable and ESG Investing: Environmental, Social, and Governance (ESG) considerations are becoming integral to investment decisions, and FinTech is aligning itself with this trend. In 2024, we anticipate a surge in FinTech platforms offering sustainable investment options, ESG ratings, and tools for conscientious financial decision-making. Investors are likely to have more access to transparent information on the environmental and social impact of their portfolios, driving a shift towards responsible and sustainable investing.
Enhanced Cybersecurity Measures: With the increasing digitization of financial services, cybersecurity remains a top priority. In 2024, the FinTech industry will continue to invest heavily in advanced cybersecurity measures to safeguard sensitive financial information. This includes the adoption of blockchain technology for secure transactions, biometric authentication methods, and real-time threat detection to stay ahead of evolving cyber threats.
Open Banking Evolution: Open banking, which allows third-party developers to build applications and services around financial institutions, is evolving. In 2024, we can anticipate more comprehensive and secure open banking ecosystems. This evolution will lead to improved collaboration between traditional banks and FinTech startups, resulting in a broader range of innovative financial products and services for consumers.
NFTs and the Tokenization of Assets: Non-fungible tokens (NFTs) have taken the world by storm, and their application is extending into the financial realm. In 2024, we expect to witness the tokenization of various assets, from real estate to art and intellectual property. This trend will democratize access to traditionally illiquid assets, allowing a broader range of investors to participate in asset ownership and trading.
Quantum Computing Impact: As quantum computing progresses, its impact on the FinTech sector becomes more imminent. While still in its early stages, quantum computing has the potential to revolutionize financial modeling, optimization, and encryption. In 2024, we may see increased exploration of quantum-resistant encryption methods and early experiments leveraging quantum computing capabilities for financial calculations.
Financial Inclusion Initiatives: FinTech is increasingly becoming a force for financial inclusion. In 2024, expect to see more initiatives focused on providing banking and financial services to the unbanked and underbanked populations. Mobile banking, digital wallets, and innovative lending platforms will play a crucial role in bridging the financial inclusion gap and empowering individuals in underserved communities.

In conclusion, the FinTech landscape in 2024 promises to be dynamic, transformative, and marked by a wave of innovations that redefine how we interact with and perceive financial services. From the evolution of decentralized finance to the integration of advanced technologies like AI and quantum computing, the FinTech trends of 2024 are set to shape a more inclusive, efficient, and secure financial future for individuals and businesses alike.

What to Look for in Fintech in 2022

By Jacob Parker-Bowles

On September 21, 2021

In FinTech, Jacob Parker-Bowles

Fintech has developed and expanded increasingly over the last decade, with firms leveraging technology, innovations, big data, and analytics. These developments are far from the last we’ll see in the financial sector; as new developments arise, everything that involves finance will be impacted by fintech. Here are some fintech trends to keep in mind as we draw closer to 2022.

Banking

Society is steadily leaning towards becoming cashless, and digital-only banks lend to this growing trend. Fewer people have physically needed to go to a bank and handle their financial issues, resulting in fewer lines and no physical cash to hold. Current online banks, such as the UK-based Monzo, Revolut, and Starling, have seen rapidly growing customer bases that force existing banks to rethink the focus on mobile apps. Fintech improvements continue to shift the banking industry, which has forced banks to close branches as a result.

As customers continue to say they plan on converting to digital-only banking, it’s no surprise that a quarter of all bank branches are expected to close within the next three years.

On the other hand, open banking pledges to deliver more competitive financial services to both individuals and businesses. This banking method connects banks, third parties, and technology providers, consensually sharing customer data with authorised providers.

Blockchain

As digital ledger technologies continue to advance and interest in cryptocurrency grows, blockchain technology will continue to open opportunities to fintech companies. According to PWC, worldwide economies are expected to adopt blockchain technology at scale by 2025. Blockchain continues to disrupt the payment industry, with many people expecting it to become apparent in both the financial sector and, specifically, fintech. This technology enables secure payments and transactions for all who use it while removing the middleman, therefore reducing costs by a large percentage. Presently, cryptocurrencies have successfully used blockchain technology and are prepared to be incorporated into financial institutions, applying them to traditional banking operations.

Financial Literacy

Fintech also provides a way to improve people’s financial literacy, allowing customers access to easy-to-understand financial information so they can make sensible decisions about their personal finances. Not all people, for example, understand the importance of budgeting; not all people are completely informed of the details when making spending decisions. Fintech uses data accessible through open banking to inform customers about the best available choices for them. The hope is to continue educating people in financial literacy throughout 2022 so that everyone can make smart financial decisions.

How Has Fintech Impacted Different Industries?

By Jacob Parker-Bowles

On September 21, 2021

In FinTech, Jacob Parker-Bowles

Fintech has spread massively over the years, to the point where it impacts more than just the financial industry. Thanks to the development of fintech, two types of products were created for the benefit of others: B2B and B2C. The first type, B2B, offers different financial services through fintech apps, while the second type, B2C, offers apps that are user-oriented for clients. The B2C model, specifically, was created to compete with financial service providers.

From mobile apps to trading areas, fintech projects vary immensely and allow entrepreneurs to get their money without having to visit the bank. Here are a few industries that fintech has impacted over the years.

Funds Transfer

Transferring funds used to be slow and expensive. If you wanted to transfer money, you really had to think about when you would do it and when you needed the money transferred by if you wanted to get it done in time. However, with fintech, the funds transfer field started to develop; according to Think with Google, 69% of smartphone users transfer money using a mobile app rather than a website. Plenty of online services exist for money transfers, such as TransferWise. These services give small companies and private users the chance to send money to others at a lower price.

Loans

Since many people have credit cards with certain payment limits, it’s possible to take out a loan online. Web and mobile applications such as KreditBee and MobiKwik allow people to use their sites and take out a loan quickly; users can usually apply and be approved for a loan in fifteen minutes. Once approved, the whole sum of the loan can be transferred to any banking card within an hour, and users can access their personal information (balances, arrears, etc.) quickly and easily. It’s no longer necessary to stand in lines and sign physical documents to get a loan; this trend could completely replace habitual crediting.

Chatbots

Chatbots are artificially intelligent bots that can, among other things, help improve the financial process. They can send notifications about changes to whoever is listed, provide helpful information to users, and more. Due to this, chatbots have increased user loyalty, which increases a business’s profit and makes a product more competitive. Several banks globally already use chatbots and have seen these results, using them to notify clients, help clients pay their bills, and so on. Some, like MasterCard, even have a chatbot for Facebook Messenger to improve digital services.

The Ins and Outs of Cryptocurrency Mining

By Jacob Parker-Bowles

On October 30, 2020

In FinTech, Jacob Parker-Bowles

Most people have heard of cryptocurrencies by now. Bitcoin and Ethereum are two prominent examples of this type of currency. Crypto is designed to be secure. It utilizes blockchain technology to create a secure record of transactions. Many people invest in crypto by trading through marketplaces, much like traditional ForEx markets. Of course, it’s also used for transactions. Cryptocurrency has the advantage of being anonymous. It’s very difficult to trace. Famously, this intense focus on security has made it very popular on the dark web.

Cryptocurrency is created through a process called mining. Miners also add new transactions to the ends of blockchains. Working as a cryptocurrency miner requires some seriously powerful computer technology. Traditionally, powerful graphics cards have been needed to conduct an effective cryptocurrency mining operation. Miners also need to be very proficient at math. It’s a competitive field, and being able to solve problems more quickly than other miners is essential to success.

These days, miners tend to work in large teams. It wasn’t always this way. It used to be fairly easy for an individual miner to get set up. In fact, in the beginning, there was really no financial reward for creating new blocks in a chain. The people who did this work simply believed in cryptocurrencies. Over the years, some big investors have been getting involved in the mining space. This includes big high street banks. Individuals have had to form larger groups in the hope of competing with these large groups.

The financial rewards of cryptocurrency mining are sizable. A newly-mined block can be worth up to 12.5 bitcoin. That’s quite a bit of money. Each new block needs to contain data proving that the miner who’s claiming it actually did create it. Essentially, they must show their work in solving the mathematical problems in order to get the reward. This is still a fairly wild marketplace. Japan has started regulating crypto, but only lightly, In other countries, there are still no rules.

It’s expected that this will change in the near future. For one thing, investors risk being burned and losing large sums of money. For another, it’s highly likely that governments will want to start collecting taxes on the capital gains associated with cryptocurrency transactions.

2020 Trends In Cryptocurrency You Should Know About

By Jacob Parker-Bowles

On May 12, 2020

In Uncategorized

Has the current COVID-19 pandemic reduced enthusiasm and confidence in the once touted ‘currency of the future’, cryptocurrency?

If recent prices are a reflection of confidence, then the answer would be a resounding, “No!”

Despite the 50 percent crash that cryptocurrency markets faced during panic-selling caused by the coronavirus pandemic and its future effects on the world-economy, Bitcoin immediately bounced back within 24 hours and saw a 20-percent increase in its share prices.

When traditional markets are currently nothing but doom and gloom because of the upcoming economic fallout that many are expecting, why is cryptocurrency still seen as a potentially good place to allocate capital?

The answer to that question is increasing blockchain technologies and the widening of regulatory measures in many countries towards its usage and trading.

Blockchain Technologies

First off, what is blockchain technology?

A blockchain is a decentralized ledger that tracks and processes transactions without the need for central clearing authority.

In other words, blockchain technology allows transactions to happen between two parties safely, quickly, cheaply, and easily because there is no third-party involvement.

Due to blockchain technology, the usage of cryptocurrency has been made possible in everyday life.

In fact, it has made everyday transactions safer and easier.

These benefits do not just apply to consumers either, for many businesses have seen their revenues go up due to blockchain technology and its ability to process cryptocurrency transactions safely and easily across the globe.

Specifically, blockchain technology allows businesses the ability to offer more payment options at lower transaction fees with fewer chargebacks.

Further explanation in regards to these benefits and others are given below:

Purchase Versatility

Businesses who offer more payment options make it easier and more comfortable for their customers to purchase their goods and services.

Simply stated, offering multiple payment options, specifically multiple cryptocurrency options, encourages more transactions.

The number of daily transactions for Ethereum in the 4th quarter of last year (2019) was around 648.25. During the same period, Bitcoin averaged 309.87 transactions per day.

Cryptocurrency transactions are especially beneficial for businesses that run eCommerce stores and attract an international audience who prefer to pay in digital currencies.

Minimal Chargebacks

Blockchain technology makes it very difficult, near impossible, for anyone to create a fraudulent chargeback while using cryptocurrency to pay for an item.

By using blockchain technology for cryptocurrency transactions, businesses can avoid chargeback fraud and thus save money, time, and resources.

Low Transaction Fees

Blockchain technology streamlines cryptocurrency transactions by making the ‘middleman’ – financial institution or bank – irrelevant.

Peer-to-peer exchange of digital currency for goods or services reduces transaction costs as there is no need to pay any additional fee for institutions to oversee and guarantee the transaction goes through.

Quick and Safe Transactions

When businesses use banks and other financial institutions to track, monitor, and process their transactions, they usually have to wait a couple of hours or days to get their money.

However, cryptocurrency transactions occur instantly, so the business receives their payments immediately.

The quicker a business gets paid, the quicker they can deploy capital to purchase more inventory and make more money.

What is more, blockchain technology has made cryptocurrency transactions safer than traditional fiat currency transactions because each coin and coin wallet is tracked, monitored, and processed all at one go.

Worldwide Regulation

One of the main attractions of cryptocurrency has always centered around the fact that governments can not lay claim to it. However, the decentralized nature of digital currency has also made it an extremely volatile investment.

At least, that is how it has been in the past.

Trading cryptocurrency has, for the most part, been a rather safe endeavor because each transaction utilizes blockchain technology, which, like digital currency transactions, supplies various safety measures to reduce the risk of fraudulent activity.

However, as it is the newest ‘market on the block’, many issues have been raised as to its safety because, after all, there are no governments and regulatory agencies to monitor it and take necessary and appropriate action should something go wrong.

In this respect, many governments around the globe have already considered taking action, albeit not always the same action, towards closer cryptocurrency and crypto-market regulation.

One of the hopes of such regulatory efforts is to entice bigger players and large institutions to use a good portion of their capital in crypto-asset allocation.

The main safety precaution that cryptocurrency regulation can bring to the market is the detection and eradication of outside manipulation.

In 2020, the efforts to regulate cryptocurrency markets have not dwindled. Some of the main areas being focused on by Western countries (i.e., those residing in the EU, along with the U.S.) are as follows:

Crypto-Asset Classification

The EU is looking to define more clearly what exactly constitutes a crypto-asset.

Unlegislated Crypto-Assets

The EU is considering legislating certain services and actions pertaining to the buying and selling of crypto-assets.

The EU feels that regulating any service or action pertaining to cryptocurrency transactions and trading will unify other crypto-asset regulations and regulatory agencies that may be formed in the future to monitor and enforce them.

The following service providers and crypto-actions are being considered for legislation:

Trading Platforms
Exchanges
Crypto-Asset Issues
Custodial Wallet Providers/Services

Currently, these providers and actions remain unlegislated and outside the control of the EU.

US Crypto-Currency Act 2020-2022

The goal of the new cryptocurrency legislation in the U.S. is to create a clear framework of operations for the cryptocurrency market and limit crypto-investing fraud and other negative drawbacks associated with crypto-trading.

The act has also split digital assets into three main categories for better classification: cryptocurrencies, crypto-securities, and crypto-commodities.

Cryptocurrencies: derivatives backed by smart contracts or collateralized digital assets.

Crypto-securities: consists of all equity, debts, and derivatives resting on a blockchain.

Crypto-commodities: all digital assets residing on a blockchain.

The above countries’ initiatives to regulating cryptocurrencies may spark a global movement towards defining and regulating the crypto market.

One thing is for sure, crypto-enthusiasts, traders, and governing bodies are expecting to see major trends take place during 2020 due to the advancement of blockchain technology and the widening of cryptocurrency regulations.

5 Cryptocurrency Trends for 2020

It is probably safe to say that some of this year’s trends will be expected while others will seem to come right out of the blue.

In either case, the probability that the following five trends will arise and continue throughout the year and perhaps for the better part of next year are very high.

Trend 1: Halvening Will Increase Value

Halvening refers to an event where Bitcoin’s block subsidy gets cut in half.

As there can be only 21 million bitcoins available at any given time, the halvening event, which usually occurs every four years, is necessary to help keep cryptocurrency demand and supply in balance.

It is expected that such an event will happen sometime during this year, increasing supply growth and making Bitcoin more expensive to trade.

Trend 2: Industry-Stalwart Backed Crypto-Launches

While regulation attempts in the past few years scared off many big brands from launching digital currency, this year, new players are expected to enter the crypto market with their version of crypto-coin.

Facebook is expected to launch its Libra coin sometime this year, while JPMorgan will most likely launch its JPM by the end of 2020.

These new launches should entice big-name players like Goldman and Sachs to start trading cryptocurrencies and make it a regular part of their overall investment strategy.

Trend 3: More Regulations

As was discussed earlier, 2020 will not be absent from cryptocurrency regulation.

While some might see this as a negative, serious investors are expected to enter into crypto markets due to the potential legalization of cryptocurrency as legal tender and the increased monitoring of its trading.

Countries like the U.S., China, Canada, Singapore, and Australia are expected to come up with more legislation and regulation regarding cryptocurrency consumer transactions and trading.

Trend 4: Blockchain and AI

The combination of AI and blockchain technology in 2020 will undoubtedly make cryptocurrency transactions even more secure.

Experts are predicting that industry leaders are going to make great efforts to insert machine learning and AI into blockchain technology to make it smarter, faster, and safer.

Not only will day-to-day cryptocurrency transactions be benefited by this symbiotic integration, but cryptocurrency trades as well.

Trend 5: Network Upgrades

Bitcoin and other cryptocurrencies run on nodes – computers that run cryptocurrency programs.

These nodes are usually connected to other nodes to form a collective network of cryptocurrencies that can be mined, traded, or exchanged for goods and services.

Now and then, these nodes get upgraded to ensure the privacy and scalability of cryptocurrencies.

This year (2020) should see an upgrade to the Bitcoin node network, which will most likely provide a host of benefits to Bitcoin and other cryptocurrency stakeholders.

5 Possible Profitable Cryptocurrencies for 2020

While 2019 saw a steep devaluation of many cryptocurrencies, the five trends listed in the previous section will likely supply a boost to the overall crypto market.

In particular, the following five cryptocurrencies should see an increase in their value during 2020 due to the above trends and other positive factors relating to their usage and trading:

Bitcoin

Bitcoin will most likely become the cryptocurrency with the largest market cap in 2020, giving it a boost in share price throughout most of the year.

What is more, Bitcoin’s ecosystem is expected to accommodate eCommerce platforms, micropayment processing, and decentralized applications, which should give it more practical value in everyday life.

Ethereum

This cryptocurrency should increase in price this year because of its functionality and blockchain technology.

Unlike Bitcoin, Ethereum is backed by practical smart contracts and therefore holds tangible value.

While other cryptocurrency values rise and fall based on surplus or deficits, Ethereum has real-world value as it is used for a host of projects centered around digital transactions.

NEO

NEO is not a typical cryptocurrency.

This cryptocurrency combines digital and real assets making it more trustworthy than other digital coins.

It will most likely gain in popularity and thus in share price during 2020 because investors seem to like the fact that its tangible asset backings make it easier for them to assign a value to it.

EOS

EOS is like Ethereum but only better.

EOS is free of all the problems associated with Etherum and other blockchains and is scalable to boot.

The EOS system has a host of dynamic features that make it superior to other blockchains, such as an infinite amount of blockchains and a unique algorithm securing proof of ownership.

What entices investors the most about EOS is that it would be the preferred blockchain for companies like Uber, Twitter, and Amazon should they ever decide to use a blockchain for cryptocurrency transactions.

Ripple

Ripple, XRP for short, was the first crypto ecosystem to partner with large financial market players.

Currently, XRP has partnered with Western Union to reduce money transfer costs between parties.

While Ripple is not expected to make huge gains in 2020, it will likely rise. Even if its share price does not go up, it is still a good long-term investment because of its partnerships and real-world applications.

Conclusion

While some people view cryptocurrency as a vehicle for wealth, others see it as the currency of the future due to its convenience and potential practicality.

Whichever the case may be, cryptocurrencies do not look like they are going to fall out of favor anytime soon.

With governments around the globe trying to regulate its usage and trading of cryptocurrencies, along with blockchain technology becoming more advanced and secure, digital currency looks like it is here to stay – 2020 might even be the year where it is recognized as a viable form of legal tender around the world.

How To Avoid Fake ICOs

By Jacob Parker-Bowles

On June 12, 2018

In FinTech, Jacob Parker-Bowles

It’s hard to avoid hearing about cryptocurrencies these days. Amazing return for Bitcoin, Ethereum, Litecoin, and many others tantalize professional and amateur investors alike. Bitcoin’s meteoric rise captured the public’s imagination. Less famously, Ethereum rose from just $8 at the start of 2017 to near $700 in March 2018. Such returns are an investor’s dream come true.

With all the publicity, many firms have turned to initial coin offerings (ICOs) to raise capital. ICOs are like cryptocurrencies, but they are issued by private companies in the same way startup corporations issue stock. The concept of the ICO is simple. Investors get a piece of the company by buying the coins the company issues. Theoretically, if the company is successful, the coin appreciates in value. In this way, ICOs work much like traditional initial public offerings of stock.

Except stocks are highly regulated. ICOs are more of a wild west type of investment. That being the case, many are cautious about ICOs. Due diligence is just as important, if not more important, in selecting an ICO as it is in picking a stock.

How to avoid scams

As a wild west investment, scams are out there. Fake ICOs have popped up. As Cryptocompare explains, there are several ways to spot a fake.

Be on the lookout for ICOs touting unrealistic expectations. An ICO that promises to fix global warming is a scam, as are ones that offer out-of-this-world price predictions. Also, be wary of any ICO promoters who use a salad of buzzwords that offer no substance. Also, any legitimate ICO will provide a detailed white paper. If the white paper is just a rehash of buzzwords and unrealistic expectations, you can bet you are looking at a fake ICO.

Email scams

Darryn Pollock warns against phony emails purporting to be from crypto wallet providers. These emails attempt to entice users into providing their private keys, allowing the scammers to steal their cryptocurrency.

Look out for phony profiles

ICO investor Ankit Kumar recommends checking on the profiles of the ICO’s founders and advisers. Often, scam ICOs will put up fake names and fake biographies. Check these names against all the research tools at your disposal, such as LinkedIn, Facebook, Twitter, and Instagram. Are these real people? If they are, you should be able to cross reference them.

Robinhood Makes Cryptocurrency Affordable and Accessible

By Jacob Parker-Bowles

On May 5, 2018

In FinTech, Jacob Parker-Bowles

Cryptocurrency is rapidly becoming one of the most popular investments, especially among young people. Dedicated investment platforms that focus on the currencies, such as Robinhood Crypto, are starting to come into use. More than a million people signed up for the platform’s early access program, largely due to the way that it makes trading easy and affordable for the average investor.

Zero-Fee Trading

Zero-fee trading is the primary reason for Robinhood’s popularity. Most trading platforms charge fees of at least 1.5% for trades and fees that reach up to 4$ are fairly common. That isn’t a huge problem for experienced investors, but it does prevent new or casual investors from taking part in the system by eliminating a large portion of their profits.

Robinhood is popular with that segment of the market because it does not charge any fees. That reduces the profit margin that the traders need to attain to justify their risks, which makes it easier for novices to come out ahead. Robinhood funds its platform by collecting interest on money that is deposited into investor accounts, just like the way that a bank makes money on deposits.

Ease of Trading

Part of Robinhood’s popularity also comes from the tools that it offers to make trading easier. Most of these tools were already in use for stock traders but had not become available to people who invested in cryptocurrency.

The platform allows a rapid transfer of up to $1000 from a bank account to the investment account, with the usual ACH transfer being necessary for larger sums. That money can be used to purchase cryptocurrencies at any time, and some transactions will even be automated through the system. Stock trading is also integrated into the platform for the convenience of investors.

Security

Security is the final factor that is causing people to use the Robinhood platform. The platform helps to address security concerns by using a mixture of both hot and cold storage systems for the cryptocurrency, which provides a layer of protection from hackers. Regular reviews of the system’s code and careful management of the company’s personnel will also help to prevent the loss of data that could expose investments to theft. Taken together, these policies provide an adequate level of protection for investors.

Altcoins That Are Worth Your Attention

By Jacob Parker-Bowles

On December 22, 2017

In FinTech, Jacob Parker-Bowles

When the average person thinks of cryptocurrency, they likely think of Bitcoin. Not only is it the most popular, it is also the most expensive, and some say the most volatile. While most cryptocurrency are tied to Bitcoin, either by using similar code to create it or simply through the market, each coin has its own distinct use and purpose. I suspect that in the future, a few altcoins will rise above the rest and will stay. Although I think everyone should put many hours of research into anything they invest in, here are some interesting altcoins to keep your eye on.

Litecoin

Litecoin is, in its basest form, a copy of Bitcoin. However, Litecoin comes with some distinct advantages that set it apart. It has a limited number of coins, just like Bitcoin, but it is larger at 84 million versus Bitcoin’s 21 million. It also processes transactions 4x faster than Bitcoin (with an average time of 2.5 minutes), and allows for better technology to be implemented. This has resulted in lower waiting times for transactions, as well as lowered fees. Finally, Litecoin is more fair to miners when they are rewarded.

Another reason Litecoin is a great altcoin to watch is it is easily accessible for even the most tech-illiterate. You can quickly buy Litecoin on Coinbase, which also offers a Litecoin wallet. Also, Litecoin is tremendously less expensive than Bitcoin, coming in at a few hundred dollars, rather than several thousand. While I cannot suggest anyone go and buy Litecoin, I think it is an altcoin that is worth watching out for.

Ripple

Another altcoin making waves is Ripple. Many people looking to exchange currency are doing so through Ripple. The currency itself has a built-in way to switch currency instantly. For example, people looking to travel may use Ripple, because they can convert from their country’s currency into their destination’s.

Likewise, banks are interested in Ripple for these reasons. It becomes much faster and less expensive to exchange currency through Ripple, rather than the traditional way. This is a bonus to both the bank and the consumer, as rates to transfer are significantly lower. Furthermore, Ripple can be a benefit to overseas merchants, and may eliminate excess fees for foreign buyers. This one factor is why I think we can expect to see Ripple adopted on a broader level than Bitcoin or Litecoin.

Monero

One benefit of cryptocurrencies on the whole are their anonymity. However, none is safer than Monero, which claims to provide complete discretion with your transactions. Because Monero is completely decentralized, you are 100% in control of your money, and if you lose it, there is no way to get it back.

Due to the nature of Monero, it is used heavily by criminals. While I do not condone criminal activities, I would be foolish not to recognize that this cryptocurrency has staying power for this reason. Also, many celebrities and companies are offering discounts to anyone who makes a purchase using Monero. I have mixed feelings about Monero, however, I will continue to watch it and see what happens next.

As I’ve said previously, I cannot and will not give you advice on how to invest in cryptocurrency. However, these three altcoins are becoming quite popular, and anyone interested in the options available may want to watch what happens to them. I believe that altcoins, just like Bitcoin, are going to become even more mainstream, and we will likely see more great altcoins join in the future. For now, we will have to watch the market and the news carefully before deciding where to place our money.

The Cashless Trend

By Jacob Parker-Bowles

On November 22, 2017

In FinTech

Every day, society is making moves toward becoming more cashless. It started with the wave of debit cards and credit cards making it less necessary to carry cash. Now, with the rise of cryptocurrencies, Apple/Android Pay, and other fintech services, carrying cash on you seems to pose more risk than reward. Today, I want to break down what society will look like as the world continues to adopt cashless options and moves away from paper money.

To begin, let’s look at cryptocurrency. Bitcoin is an example of a desire for anonymous, neutral money. By this, I mean people like being able to go anywhere and use their money without having to worry about foreign exchange rates and understanding how foreign currency works. Now that countries are more readily utilizing Bitcoin, at least in major cities, people don’t have to worry as much about preparing for their next trip.

Speaking of trips, we make trips regularly, whether it’s to a corner store or across the sea to another country. Going cashless would make traveling so much easier. There are still many cities (particularly in the USA) where buses and subway trains only take exact cash. Consider how many people would rather pay with a card or their phone, rather than having to count out dollars and cents, and overpaying if they don’t have the exact change. Luckily, many European countries are adapting to the cashless wishes of their citizens. One stellar example is the London Underground. Oyster cards are easy to use for residents and tourists alike, and I expect to see most countries utilizing similar technology in the years to come.

Restaurants and businesses also gain huge benefits from running cashless. While gas stations may be easily robbed now, in a few years they may not accept cash anymore, which can lead to a decrease in robberies. Sure, companies who run strictly cashless need to invest in cyber security to prevent hackers from exploiting their faults, but guarding against hackers is a much safer situation than guarding against men with guns.

One area that I imagine could easily move cashless is utilities. Many people (perhaps most) pay for their utilities online in some capacity. Nobody sends real money, and older people are the ones most likely to write a physical check. I don’t necessarily expect companies to begin accepting Bitcoin immediately, but I do believe there will come a point where they refuse to take a paper check as payment.

Of course, all of this leads up to banking. Banking is going to be one of the most rapidly evolving fields over the next decade or two. Traditional banks will begin shutting down as customers flock to online banks, where interest rates on savings and checking accounts are substantially higher. It is also predicted that AI will automate many financial services, making physical locations with real people irrelevant. Also, if cryptocurrencies keep their upward momentum going, there may be no need for a bank, traditional or online.

The next few years will be interesting, given the rise of so many fintech companies. Old systems are sure to be phased out, and I predict that the landscape of finance is going to change drastically. For now, we have to wait and see what the newest technologies will bring.