Governments And Crypto Industry Should Work Together

Have been through the process of choosing a crypto exchange for Glitzkoin's GTN token in recent months. The procedures and checks have been far tougher than they were in mid-2018. That was the time when the Glitzkoin project, completed e

Make no mistake, we are not grumbling about the stiffening of exchange listing procedures – we do feel that the additional procedures are a good move. But we have our opinion about the rather confrontational incidents that, have developed between government authorities and crypto exchanges in recent months.

 

New laws and regulations to govern the crypto industry are being progressively formulated and launched - this is both welcome and necessary. Having said that, it is likely that some existing exchanges might face challenges, when it comes to complying with these new requirements. It is also possible that existing exchanges might have performed activities in the past that, have now become unacceptable or even illegal under, subsequently implemented laws and regulations.

 

Situations like the one explained in the previous paragraph, need to be handled tactfully. While ultimate compliance could be mandatory, exchanges should be given reasonable time to adjust and adapt. In order to achieve optimum results, it would be best if exchanges and governments could work together. A confrontational approach would be detrimental to all stakeholders. Authorities could be unrelenting and forceful in implementing regulations that, are aimed at eliminating crypto activities that are blatantly illegal. This is something that cannot be taken lightly. It would not be very difficult to isolate specific cases where, loopholes in laws have been meticulously exploited. 

 

This report would be incomplete without referring to investors, the participants who interact directly with crypto exchanges. The interest of innocent investors should be kept in focus when, the authorities deal with crypto exchanges. We use the term 'innocent' investors to differentiate them, from investors who deliberately circumvent laws and regulations, for their own personal benefit.

 

Glitzkoin CEO Navneet Goenka made some interesting observations on the topic of crypto exchanges and legal formalities, '... crypto exchanges are being rightly encouraged to become, more transparent and more responsible. This is inevitable as crypto transactions are increasingly, entering the domain of conventional money. The nature of transactions and the identity of the parties to a crypto transaction, need to be traceable and trackable. This is something that will bring fundamental changes in the way the crypto industry operates. This is inevitable ... understandably so'.

 

GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token.  The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry. 

The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.  

The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform.  This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases. 

Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.  

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Related Resources: [Project Updates]