S. Korea has consistently maintained a positive approach towards cryptocurrency. Laws and regulations have been framed to curtail the misuse of crypto but, these measures have always been reasonable. The S. Korean crypto industry has responded positively and crypto development has been enthusiastic.
With that background it might sound strange that, the Korean government is likely to ban trade in privacy (crypto) coins. We will explain the concept of privacy coins in a moment but, let's first talk briefly about the emerging role of crypto in the financial world today.
Cryptocurrency usage has shown a significant rise - many purchases are being paid through crypto, we also have crypto being used as collateral to secure loans in fiat money. A few governments have even started allowing, citizens to pay their taxes using cryptocurrency. We could go on and on but the bottom line is that, crypto has started to 'behave' like real money - this trend is bound to keep increasing.
Talk about money and issues like, corruption and crime become a reality. These problems have understandably sprung up in crypto space too. Crypto crime covers issues like money laundering, terror funding, tax evasion, crypto hacking, crypto scams etc. Tracking and apprehending crypto criminals, requires access to the human beings behind such activities.
The technology that supports cryptocurrency, focuses on anonymity - this is something that law enforcement officials, need to penetrate. It is fair to say that, measures put into place by implementing laws and regulations, have (generally) made it possible to trace and track criminals who, operate in the crypto world. The situation in the case of privacy coins is different, we talk about that in the next paragraph.
Privacy coins follow algorithms that, make it extremely tough to identify and track transactions made with them. Law enforcement officials are unable to reach the precise person or group of persons, responsible for making crypto transactions through privacy coins. This should explain why the South Korean authorities, are keen to ban trade in privacy coins.
The US government has tried an interesting approach to tackle privacy coins. Private operators are being funded to develop tools that will help cut through the thick level of anonymity that, shrouds transactions conducted through privacy coins. There is no saying at this point whether, the Americans would implement a ban on privacy coin trade like the Koreans.
Lila Ruzaini the Business Development Manager at Glitzkoin, summarizes our opinion on the issue of privacy coins. She mentions that, '... we at Glitzkoin would like to see a wider participation in crypto usage and trade. While we do not support a blanket ban on the crypto industry we do feel that, crypto space should be made safer. And to this end, it is important that crypto crime is effectively tackled and criminals punished'.
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 Stellarblockchain 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 NavneetGoenka, 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.
Related Resources: [Project Updates]