KYC - Know your customer

China and the Bitcoin stumble

Chinese economy - BitcoinIf you’ve been following crypto currencies, you couldn’t help but notice a 20% slide in the Bitcoin dollar price. With the way these things work, that means the whole crypto market is down by a similar amount. Bitcoin is a bit like Rocky Marciano at the moment – groggy and not doing too well, then suddenly unleashing an unbeatable flurry of punches. Remember he retired undefeated.

By the way, Bitcoin is still up on a year ago. This from a blog post on 13th September 2016 : “In the past 2 weeks, the price of Bitcoin made a surprising run up, breaking past the famed $600 level to a $630 high”. Umm so that’s up 700% ( roughly).

KYC - AMLThe reason for the current weakness is the Chinese decision to ban ICOs (that’s a bit strong, it’s more like a serious “pause”) and demand more KYC and AML checks. And, of course, not to have pie in the blue sky ICOs with no real business plan, no real business, no real assets and no real prospect of future success. In case you aren’t getting the message, this is a GOOD thing. Ever since OneCoin reared its disgusting head, crypto currencies have been plagued with bad press, and this is no different. ANYTHING that makes the sector more transparent, more solid and more clear is excellent news.

So this is GOOD news for Scotcoin. We have already instituted KYC and AML checks on anyone purchasing  more than £100 worth, and when we migrate to our own blockchain, everyone will be identifiable. There are those that argue this is against the ethos of Bitcoin, the blockchain and crypto currencies generally. I say those are the people who will get left behind in the disruptive transformation we are going through.

Just as a thought, through all this turmoil, Scotcoin has held steady. We have not changed the https://exchange.scotcoinproject.com price throughout . We see a steadily increasing value for the crypto currency market over the next period.

1 reply
  1. DRDWoodward says:

    My concern is the relationship the existing banking system creates between itself and the blockchain and more specifically crypto currencies. Anything that makes their control more amenable should be scrutinised with scepticism.

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