Since the very beginning, cryptocurrencies appeared in the news because of different crimes that took place in the space. Virtual currency exchanges are not the best place for investors to leave their currencies, they have been hacked several times and it will keep happening.
Moreover, ICO scams have also been expanding during the last months, and indeed, several governments are starting to take measures to stop that.
During a panel at the Tel Aviv University’s annual Cyber Week cybersecurity conference, financial and blockchain experts explained which are the most important problems that cryptocurrency adoption is facing nowadays.
According to them, crime is one of the most important factors that deters investors to place their funds in the virtual currency market. The threat intelligence analyst of Check Point Software Technologies, believes that cryptocurrency related hacks such as hacks and scams will surpass all other crimes during the current year.
At the same time, Haim Pinto, CTO of Bank Hapolaim, said that blockchain technology is in a ‘hype cycle’ and that it does not have a real world use yet. Moreover, he commented that due to the fact that cryptocurrencies work unanimously, criminals have a new way to launder money or perform criminal activities.
Some time ago, Bloomberg released an inform made by a professor at the University of Texas, that revealed that Tether (USDT) has been used to manipulate the cryptocurrency market, which can be considered a crime. Furthermore, Tel Aviv University Economics professor Neil Gadal, presented a paper that shows that Bitcoin boom in 2013 was caused by a trader using trading robots.
John Velissarios, Principal Director and Global Blockchain Technology lead at Accenture said:
“We’re seeing blockchain applications for capital markets, exchanges, clearing and settlement systems and payment systems. The technology is evolving and applications are becoming more significant.”
Different companies around the world, including banks and other financial institutions have been working with blockchain technology in order to increase security and make services more efficient.
The panel agreed that more regulations in the market are needed to reduce the crime rate in the space. And this is in line with what other experts in the crypto community say, for example, Brian Kelly or the Winklevoss Twins.