US Defines Framework For Cryptocurrency – Seems Beneficial

The Cyber-Digital Task Force functioning under the US Attorney General's office, came up with the much talked about US Framework For Cryptocurrency. While many hardcore crypto players had some rather stiff comments, those outside crypto space did not seem to show much interest in the happening. The time was October 2020.

There is a general feeling that while the US Office did seem to recognize the positive potential of cryptocurrency, the report sought to highlight the negatives. We at Glitzkoin differ in our opinion - logical reasoning explained below.

The report explains how the characteristic features of blockchain and cryptocurrency, are being exploited to engage in illegal activities. Advanced crimes like crypto wallet hacking, elaborate ransomware schemes that are perpetuated behind the opaque nature of cryptocurrency and terror funding, are some of the crypto related crimes sighted in the report. 

Glitzkoin CEO Navneet Goenka has consistently called for an increased crypto usage. This implying that crypto transactions need not and should not, be limited to mere speculative trading at exchanges. Glitzkoin’s commitment to this concept of increased crypto usage, can be seen in the usage cases for the GTN token that are built into the project. 

There is no doubt that cryptocurrency is today, inching closer to being treated on par with conventional money. Business transactions are being settled with crypto, credit cards are starting to facilitate spending through this new financial innovation, we even have cases where real estate deals have been fulfilled with crypto being used as the mode of payment.

This gradually growing trend to pay and receive cryptocurrency instead of regular cash, inevitably draws us to the topic of taxation. Formulation, implementation and enforcement of crypto taxation norms have become more common. The US Framework For Cryptocurrency, also talks about problems like tax evasion. 

Let's get right back to what we stated in the first couple of paragraphs of this report - we talked about how the US crypto framework, seemed to accept the positive potential of cryptocurrency but, ended up detailing the negatives in the report. We look at this thought in light of, the subsequent information that we presented so far.

In our opinion, the US Framework For Cryptocurrency did not discount the potential or utility of cryptocurrency. While relying on the crypto industry to innovate and develop the positive aspects of cryptocurrency, the report sought to ensure that the negative side of the fast growing technology is tracked, traced and brought to justice. This has also involved the setting of a few important responsibilities for crypto exchanges.

On the whole, there is little reason to see the efforts of the Cyber-Digital Task Force in negative light. Having said that, it is equally important for the industry to proactively interact with government agencies - this to become an integral part of future policy framing and decision making.

 

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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