Stex founder: Cryptoderivative platforms are Forex-Kukhni of the beginning of zero
Stex founder: Cryptoderivative platforms are Forex-Kukhni of the beginning of zero
FORKLOG continues the series of podcasts “Explain behind the crypt”, where he communicates live with representatives of the crypto industry.
In March, the guest of the show was the founder of the Estonian cryptocurrency exchange of Stex Vadim Kurilovich. In an interview with FORKLOG Live, he spoke about the regulation trends in the EU and Estonia, the imperfection of KYC and the disadvantages of marginal trade.
Regulation in Europe and Estonia
According to Vadim Kurilovich, the regulation of the cryptocurrency industry in the EU is aimed at combating money laundering:
“Regulators do not bother where you are translating and how you spend cryptocurrencies. It is important for them that users do not wash money. The regulator is not interested in the expenses of the conditional Ivanovov, but if his operation seems suspicious, the regulator will ask for additional documents “.
He notes that Estonia has developed one of the best cryptocurrency legislation in Europe:
“In Estonia, regulation rules are not just copied from the banking sector. There are many nuances in crypto regulation, it is still being formed – this is a dynamic process “.
In July 2020, Estonian regulators tightened the rules for registering cryptocurrency companies – increased the state fee and demanded the physical presence of the company’s offices and employees in Estonia. More than a thousand companies could not fulfill new requirements and lost licenses.
“The tightening of the rules coincided with the pandemia of the coronavirus. Some companies have difficulties with overwriting. Representatives of companies simply could not fly to the country or hire people in Tallinn. Many businesses closed because they calculated the new requirements too burdensome. Most likely, these companies initially did not need an Estonian license, ”comments Vadim Kurilovich.
He is sure that effective legislation can be developed only when the business interacts with regulators. For this reason, Stex joined the working group in blockchain and virtual currencies (BVS WG), which advises the EU regulators on crypto industry regulation.
Decentralized exchanges at risk due to lack of KYC
Kurilovich considers the main risk for DEX the lack of “Know your client” [Know Your Customer, KYC].
“If the trading platform does not have KYC, for the regulator this is washing money,” explains the founder of STEX.
Vadim emphasizes that KYC on adjustable crypto -streaks needs to be modified:
“There is a bank secret and general data protection regulation (GDPR). At the same time, programs to combat money laundering (aml) apply. The problem arises: GDPR and AML/KYC have mutual contradictions. The question is how to make them make them, so that they fulfill their functions “.
BVS WG is working on the improvement of Aml/KYC in the crypto industry. The group advises the EU regulators about services for monitoring transactions and identification of users on exchanges.
There are no regulated cryptoderivative platforms in the EU
The founder of STEX notes that the EU does not have a clear regulatory framework for the cryptoderivat market.
“If someone says that in European jurisdiction there are derivatives for cryptocurrency, Leverid and so on, he deceives you,” says Vadim.
According to him, margin platforms have many opportunities to cheat users:
“With the exception of Kraken, where there are at least some pieces of paper, a derivative trade in cryptocurrencies today is Forex-Kukhni by the beginning of zero. With all the problems arising from this “.
Kurilovich emphasizes that not all cryptoderivative exchanges want to deceive their users. However, it is easier for them to do this than spooning platforms.
Do not store cryptocurrencies on exchanges
In 2018, the founder of the Canadian Crypto Ripper Quadrigacx Gerald Kotten died. In April 2019, the exchange announced bankruptcy. The investigation showed that the cause of bankruptcy of the Quadrigacx exchange was the fraudulent actions of the cottage.
He spent users’ money on maintaining a luxurious lifestyle and opening margin positions on other exchanges. When customers https://gagarin.news/news/a-billion-crypto-users-in-the-next-few-decades/ withdrew funds from the exchange, Kotten compensated for their balance sheets due to deposits of other customers.
Vadim Kurilovich believes that such a situation can repeat herself on unregulated sites. He urged users not to store cryptocurrency on exchanges:
“Use cryptocurrency wallets. No one knows what can happen somewhere in the middle. As money can be lost in the bank, so the exchange can lose it somewhere. There is always risk “.
Recall that last week Vadim Kurilovich spoke about the new bill on the regulation of crypto -activists markets in the EU (Mica).
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