CHINA AND ICOs REGULATION. TRANSPARENCY AS A VALUE FOR CRYPTO INVESTING
During the last week, the Chinese state-owned news outlet Xinua suggested that the Chinese authorities ban on cryptocurrency exchanges and ICOs could be just temporary. As reported by Cryptocoinsnews.com: “The Chinese government will likely resume cryptocurrency trading in the upcoming months with necessary Know Your Customer (KYC) and Anti-Money Laundering (AML) systems in place.”
Early in September the Chinese authorities intervened with a ban on Initial Coin Offerings that apparently was intended at stopping speculations and alleged criminal activities possibly related to this rising market.
This intervention seemed to some observers just an attempt to regain some ground on the side of governmental bodies, in order to try and regulate the financial landscape emerged in the last years following the creation of cryptocurrencies like Bitcoin and Ethereum, but also from the emerging world of digital and crypto investing.
The attention of governmental authorities, like the Chinese and then the American SEC, seemed to be focused on the lack of regulations and transparency and thus, and particularly from the Chinese standpoint, on the implementation of new KYC and AML procedures.
But the need to create a regulated and sustainable market for digital investing and crypto trading has already emerged on the field: at Elpis we think it actually should represent a fundamental goal to any company involved in the sector.
As a matter of fact, preventing any governmental bodies’ attempt at regulating trading transactions, must be a relevant part of the truly innovative startups business plans, if they want to significantly contribute in creating a new and efficient market. A market where it would be possible to operate transparently. That is, guaranteeing both the investors and the companies’ interests.
Blockchain technologies have inherent characteristics that could be implemented to enable KYC and AML procedures to guarantee the safety and security of operations for digital and crypto investing companies. And, first and foremost, for the investors. Operating on the Ethereum blockchain, for example, allows for KYC and AML procedures to be ingrained and set in place into the smart contracts at the basis of the agreements between companies and investors.
As a truly innovative fintech startup, at Elpis we have already set up innovative KYC and AML procedures, that we are implementing in partnership with CapchainX, a platform specialised on creating, managing and trading equity on the Ethereum blockchain.
At Elpis we consider transparency as one of the milestones of an innovative approach to investing: we want to contribute in shaping a sustainable and regulated market, fair and efficient for both the investors and the technology-driven investing companies like ours.
As much as any implementation of KYC and AML procedures is welcome, we also think that there is no need to wait for any governmental authority to regulate the emerging crypto asset market: we are the ones that should shape it, developing technologies like the blockchain, that enable us to contribute in building a sustainable and efficient market.
At Elpis we have the will to be on the forefront and we are doing it. Transparency it is not just a value for us, we want it to become a shared value for a new generation of investors that is already growing out there. A new generation of investors that are looking for innovative investment companies like Elpis to find transparent and fair partners to invest with.
Please visit Elpis Investments for more information regarding our company and our trading strategies.
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Originally published at medium.com on October 10, 2017.