According to a recent study, losses resulting from the theft, fraud & misappropriation of cryptocurrencies doubled in the first quarter of 2019, totalling nearly $1.2 billion. Hence, the questions on everybody’s lips are, “How can investors & cryptocurrency holders protect themselves against scams in the cryptocurrency industry?", “Does opening a cryptocurrency exchange in the EU or US involve any additional risks to investors?”, “What does it take to get a license for cryptocurrency exchange in the US or EU?, “What are the legal implications of investing in cryptocurrencies in Europe?”
Binance, one of the world's largest cryptocurrency exchanges, has recently reported a loss of $41 million due to phishing, viruses and other methods of stealing cryptocurrencies. That announcement was preceded by Fidelity Investments’s announcement that it would soon be buying & selling bitcoins in the EU & US.
And while courts are only beginning to address the question of whether cryptocurrency crimes can be treated as commercial ones, insurers have been quick to come up with special insurance policies covering against the theft of cryptocurrencies.
So, how does one ensure the safety of their e-savings? Is there any legislation governing the exchange of cryptocurrencies in Asia, America, Africa or Europe? In fact, answering that question requires concerted and focused efforts of authorities in different countries. They must ensure that the senior managers and personnel of companies trading in or investing in cryptocurrencies in the EU or US are sufficiently protected against any kind of cybercrime.
IQ Decision UK will be following closely the developments in the crypto industry, providing you with all the latest updates in this regard. If you’re planning on registering a cryptocurrency company, our experienced legal advisors will be happy to provide legal advice on the regulation of cryptocurrencies in a jurisdiction of your choice & assist in obtaining a cryptocurrency exchange license.