The only way to safely trade cryptocurrency? Using a service that introduces online identity verification

Today, we are going to cover blockchain and cryptocurrency, which are on the rise again these days.

First, let's look at the hot issues related to blockchain.

According to the article, we can see that interest in cryptocurrency is growing ahead of the upcoming US presidential election in November.

However, the conflicting stance on blockchain is still ongoing, and the stance on cryptocurrency created with blockchain technology is also the same.

For easier understanding, block Let me briefly explain the relationship between chains and cryptocurrency.

Blockchain can be said to be a 'technology' that safely stores data. Because blockchain is not independent, it is difficult to change information. For this reason, blockchain is known as a technology with excellent security.

Cryptocurrency is a 'digital currency' created based on the above blockchain technology and is protected and managed by blockchain technology. An example of a cryptocurrency is Bitcoin, which everyone has heard of. Bitcoin is the first cryptocurrency using blockchain technology. Cryptocurrencies can be exchanged directly between people over the internet without the need for a central bank or government agency. In addition to Bitcoin, there are various other cryptocurrencies such as Ethereum, Ripple, and Litecoin.

Blockchain, cryptocurrency, and Bitcoin are closely connected, but each is a different concept. To summarize, blockchain is a “technology” and cryptocurrency is a “digital currency” created using that technology.

What if there are no eKYC solutions (online identity verification) for cryptocurrency transactions?

Earlier, we mentioned that blockchain is known for its excellent security. So why are there conflicting views about blockchain and cryptocurrency?

It mainly comes down to three factors: third-party service security issues, regulatory risks, and exposure to illegal activities.

1. Third-Party Service Security Issues

While blockchain is designed to be almost tamper-proof, hacking can occur in cryptocurrency exchanges or wallet services that rely on it. Many news articles highlight cases where exchanges storing large amounts of cryptocurrency have been hacked or personal wallets stolen. These issues are due to security flaws in third-party services rather than blockchain technology itself.

For example, in 2019, New Zealand's Cryptopia exchange was hacked, losing about $16 million worth of cryptocurrency. These incidents highlight vulnerabilities in third-party services, not blockchain itself, underscoring the need for stronger security measures.

2. Regulatory Risk

Blockchain and cryptocurrency currently lack consistent global regulations. Due to varying legal frameworks across countries, it is difficult to uniformly apply legal measures to prevent illegal activities or protect investors.

In countries with less stringent regulations, issues like money laundering or terrorist financing could arise. Cryptocurrency, which values anonymity, is particularly prone to being used for illicit money laundering, making it a target for regulatory scrutiny.

3. Exposure to Illegal Activities

Cryptocurrency’s anonymity makes it vulnerable to illegal activities like money laundering, fraud, and ransomware attacks. Since funds can be transferred anonymously in the cryptocurrency ecosystem, tracking them is challenging. Investors may also be misled during ICOs (Initial Coin Offerings) or token sales in blockchain projects.

In conclusion, while blockchain technology is innovative, regulatory concerns, misuse of cryptocurrency’s anonymity, and third-party service security issues contribute to conflicting opinions on its use. A stronger security infrastructure and appropriate legal regulations are needed to address these challenges.

However, crafting effective regulations is a complex process that varies by country and is unlikely to happen quickly. Therefore, focusing on stronger security systems may be a more realistic short-term solution for businesses.

The safest way to trade cryptocurrency?Using third-party services that implement eKYC solutions

Exchanges such as Binance, Coinbase, Kraken, Huobi, and Bittrex have already strengthened their security by using third-party services that implement eKYC. eKYC enhances customer identity verification, improves transaction transparency, and helps meet anti-money laundering (AML) regulations.

Introducing eKYC is essential in digital financial environments like cryptocurrency exchanges, as it plays a crucial role in helping financial institutions and companies avoid legal liability and ensuring transaction transparency.

Introduction of ARGOS online Identity Authentication

Blockchain-related companies using ARGOS' online identity verification services include notable examples such as Gala Games, CAEX, Condor, Borabit, and Crust Universe, which have already implemented ID check to enhance security and compliance in blockchain transactions.

If you have more questions about blockchain cases, you can check them on the ARGOS Financial Regulations Use Cases website.

ARGOS ID check: online Identity Authentication Service Optimized for Blockchain

ARGOS ID check is used in digital financial environments such as blockchain and cryptocurrency, providing a reliable online identity authentication service.

It uses facial recognition technology with an accuracy rate of over 99.996% and recognizes ID cards from over 200 countries. The system detects forged faces or documents through advanced Liveness technology and offers functions like duplicate user detection, abnormal IP detection, and ARGOS SCORE, ensuring a secure authentication process.

Improved Efficiency and Security

ARGOS ID check offers over 300% operational efficiency, minimizing errors and enabling fast, efficient system management. With real-time changes and intuitive administrator screens, the service helps manage the system with minimal resources.

ARGOS ID check is ideal for solving identity verification issues in digital financial environments, including blockchain and cryptocurrency. Through eKYC technology, it provides accurate, secure identity verification using customized authentication policies.