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    Home»Others»Why KYC, AML and a Bear Market Can Destroy Decentralized Exchanges
    Others

    Why KYC, AML and a Bear Market Can Destroy Decentralized Exchanges

    MichelleBy MichelleApril 18, 2024

    The article What To Do When the Numbers Donโ€™t Grow examines the prospects for the cryptocurrency industry in the context of an outflow of liquidity and โ€œtightening the screwsโ€ on the part of government regulators. The main threats that the DeFi industry may face are shown.

    Vladimir Okhotnikov of Floralia company, a well-known publicist, blockchain technology expert and visionary, the head of the company bearing his name, is ready to share with the reader his vision of all sorts of problems characteristic of the cryptocurrency industry during a bear market. His interview is dedicated to the difficulties awaiting an investor who has invested in cryptocurrency.

    These days, most people still prefer to pay with regular credit or debit cards. At first glance, this looks strange: it would seem that it is much easier for a person to turn to cryptocurrencies, which ensure the anonymity of transactions. Vladimir explains this reluctance of the mass user to use cryptocurrency as a banal habit and reluctance to learn new things:

    โ€œPeople find it difficult to step out of their comfort zone, even if new skills help them improve their lives. Hackers, scammers and plain laziness prevent us from acting. However, progress cannot be stopped: every year the number of owners of cryptocurrency wallets is growing steadily.โ€

    At the same time, Vladimir is not at all a supporter of the idea that the cryptocurrency industry is a magical land where the wishes of every โ€œhamsterโ€ come true. On the contrary, the expert believes that this is an extremely risky area of investment: the article mentions coins which have ruined many investors who had invested in them.

    According to Vladimir, an overheated market attracts many unprofessional investors who get caught up in the hype and then pay for their own greed with their last money.

    At the depths of a bear market, desperation reaches its limit:

    โ€œIn November 2022, the FTX exchange went bankrupt. Sam Bankman-Fried soon tried on a prison uniform, and Bitcoin more than tripled. NFT has turned into a funny meme, ridiculed in the TV series South Park,โ€ concludes Vladimir.

    The expert believes that the bear market of 2022โ€“2023 has aggravated all the risks associated with the functioning of the cryptocurrency market. New initiatives from the regulator are on the horizon – for example, the KYC procedure, which will most likely become mandatory in the European Union and the United States in 2024โ€“2025 for all users of the largest cryptocurrency exchanges.

    Careful practical implementation of AML principles is another aspect of the regulator’s action, leaving no doubt that the SEC and its European allies are committed to fully regulating the young cryptocurrency market in the next few years.

    According to Vladimir, this course of events means that DEX will face global risks that will call into question the very existence of the cryptocurrency industry. Read about this and much more in the ะพriginal articlะต.

    About the company

    The Floralia company provides a wide range of services in the areas of financial forecasting, consumer development, implementation and augmented reality. This is a team of leading professionals in the field of economics, crypto and IT.

    Vladimir Okhotnikov’s Press Center

    https://vladimirokhotnikov.com/

    Floralia, LLC

    Phone: +7(771)317-20-55

    Address: Kazakhstan, 041609, Almaty region,Talgarsky district, Besagasky rural district, Besagash village, Rayymbek Batyr st, 285

    #vladimir_okhotnikov

    #defi

    #web3

    #cryptocurrency

    #blockchain

    Michelle
    • Website

    Michelle, on the other hand, is a wordsmith and an avid follower of popular culture. With her flair for storytelling, she transforms raw financial data into engaging narratives that captivate our readers. Michelleโ€™s ability to blend data with storytelling creates a unique reading experience, making our articles not only informative but also enjoyable.

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