Finance

Amidst Continuing Hacks and Scams, How Should the Cryptocurrency System Move Forward in 2020?

It is now widely recognized that the cryptocurrency financial system has become a burgeoning industry. So much so that it has become ripe with opportunities for fraudsters and hackers, as millions have become victims of cryptocurrency investment scams and cyber attacks. Apparently, the common factor that has made victims vulnerable to criminal elements is their complacency.

They see the blockchain system as having sufficient shield against the prying eyes of financial regulators and tax enforcers. Yet they also take it to mean that the entire workings of the cryptocurrency financial system is safe from the schemes devised by scammers and hackers. .

Victims tend to overlook the fact that the beginning and end of cryptocurrency transactions still require participation of banking institutions. Not unless one is a cryptocurrency miner who gets to own a unit of cryptocurrency for every block of encrypted transactions he or she adds to the blockchain system.

Purchasing cryptocurrency with real cash, is still the fastest approach to owning digital money. Mainly because it takes high-powered computers to solve complex encryptions plus a lot of hard work is involved. Now in order to have real-world value, cryptocurrencies have to be cashed out through bonafide bank accounts or central bank-accredited payment processors.

Actions Taken to Strengthen the Security of Financial Transactions Involving Cryptocurrency Exchanges

As far as The Society for Worldwide Interbank Financial Telecommunication or SWIFT is concerned, they have reacted to cyber attacks by reinforcing cybersecurity controls, and by identifying the weakest players in the SWIFT community.

Moreover, this organization of global financial telecommunication experts, makes sure that information about the modus operandi of known cyber attackers, are disseminated worldwide to prevent further occurrences of hacking incidents.

In the cryptocurrency system, which is basically a decentralized method of exchanging digital funds, whilst working outside of a central bank or a recognized administrator, members of the cryptocurrency community rely on each other in preventing scams and hacking incidents.

Cryptocurrency service providers like operators of crypto exchange platforms and digital asset custodianship, have also taken steps to prevent digital funds from being stolen. However, the fact that many crypto-related investment frauds and illegal cash-outs still happen, the use of encryption controls, of blacklisting addresses and of capping cash-out transaction, have not proven as sufficient deterrents against criminal elements and their modus operandi.

What Financial Experts Recommend to the Cryptocurrency Community in Moving Forward to 2020

Many articles written about cryptocurrency fraud suggest that it is not only the technology of the system that requires strengthening. Proponents and players in the digital currency market must acknowledge that it takes more than encryption to provide the necessary check and balances in ensuring the validity of blockchain transactions.

Improving the cryptocurrency system also requires risk management and adherence to basic financial controls. Particularly that of segregating duties, functions and roles among those who have access to the blockchain system to deflect conflicts of interests. Segregation pertains to those who have custody of customer assets, as well as from those who facilitate trading or exchanges of cryptocurrency funds.

Most important of all is to instill the importance of education or know-how among participants, before entering into cryptocurrency transactions.

Rather than have digital asset owners and potential investors rely on information provided by influencers, participants should have a clear understanding of how crypto-exchanges and fund transfers work; of the risks involved, as well as have accessible information about established institutions and organizations that can help in verifying the legitimacy of digital investment offers.

Posted by Madelina Feliks in Cryptocurrency, Finance

Settlement Funding: A Cash Flow Remedy For Injured Persons And Legal Professionals

Pre-Settlement Loans is a comparatively recent financing approach to plaintiffs associated with lawsuits plus the attorneys addressing them over a contingency charge basis. There are numerous terms applied interchangeably to legal funding. This includes pre settlement loans auto accidents, third party financing, lawsuit funding, suit settlement money, presettlement auto financing, post-settlement financing, lawsuit financial loans, and lawsuit finance.

Litigation Funding, Shaking Up The Legal Industry

What is a pre-settlement loan or legal funding?

As outlined by Legalist, legal funding is considered the process whereby both injured persons and lawyers can get financing litigation or other legal related funding through a third-party funding business. These financial institutions provide assistance to their clients in return for a percentage of their settlement money. In line with the Litigation Financing Journal, these kinds of transactions happen to be “ nonrecourse, meaning that in case the client seems to lose the case, the funder is unable to pursue the client’s various other assets not related to the lawsuits to gain pleasure. ”

A third-party financing company is just the organization that provides a cash advance, or perhaps legal money, to the plaintiff or the legal practitioner. Such businesses that provide these kinds of advances are usually known as legal funding firms.

If the individual (or legal professional working on a contingency payment basis) would not win his case, chances are they are not in charge of repayment in the funds advanced by the third party finance company. That’s why using the term “advance” is more appropriate than the term “loan. ” Because there is zero payment important unless there is a favorable result in terms of money, award or perhaps verdict, legal funding advancements are not financial loans but are, rather, nonrecourse orders. The “ nonrecourse ” concept is very important to understand since it is the main aspect differentiating legal funding via traditional funding such as financial loans and lines of credit.

Mainly because legal financing transactions happen to be nonrecourse, there exist some companies struggling to recoup their particular investment. Because of this, legal financing is more high-priced than classical financial choices such as loans, credit lines, and low-rate charge cards. So, why not merely use a more affordable option?

Creating Paths To Success

Though credit lines and bank loans are much less expensive cashflow solutions, these choices are not always functional or attainable. Banks generally require a guarantee in the form of nonliquid assets (such as an inventory portfolio, genuine or real estate property holdings). Therefore, if the consumer is unable to produce payments, the bank can recover their investment selling the collateral.

Other Options for The Plaintiff

Injured persons should get a loan or a credit line from a lender, use their very own credit cards, demand financial support from relatives and buddies, use cash stashed away within a savings account or perhaps take out credit against all their 401(k). Or if you have a crypto fund, you could borrow against your crypto funds. Should you be a lawyer, make an effort to increase affiliate fees and referrals, expand on your own network by attending community events, employ credit cards and savings accounts or obtain a small business financial loan.

So, whether you are an individual involved in a lawsuit and need funds while anticipating a settlement or perhaps an attorney needing capital holding out to receive the contingency cost, legal funding can be an important solution to your money flow challenges. Just make sure to exhaust less expensive financing alternatives first, if possible.

Posted by Laney Seward in Finance

Crypto Insurance – Why It’s Needed And What Concerns Insurance Providers

An insurance policy or coverage is a measure taken to avoid financial loss which is offered by an insurance company, an insurer, an underwriter or an insurance carrier. It is a type of risk management wherein it is mainly utilized to protect against the possibility of contingency loss or any uncertain and unforeseen financial loss.

For instance, a motor trade insurance is an insurance policy that safeguards someone involved with car dealing as a business or a profession, which could be a part-time or full-time occupation. Regardless if you are sole trader or a Limited Company and employ workers, traders insurance is needed. A motor trader could be a valeter, a car mechanic or individuals selling automobiles as a side income. A motor trader insurance’s focal purpose is to ensure you are lawfully covered, wherein the least insurance policy mandated is a policy on Road Risk Motor Trade alongside a Third Party Only policy.

Cryptocurrency Insurance Can Be A Huge Industry

With the prevalence and maturity of the market of cryptocurrency, it has been getting the attention of numerous players from various industries, the insurance industry being one.

As per a report by Bloomberg, crypto insurance is primed to be a huge opportunity. A spokesperson from one of the leading company of insurance provider, Allianz, stated that the company was looking into product as well as coverage preferences in the cryptocurrency space since digital currencies were turning out to be relevant, significant, as well as prevalent on the actual economy.

Why The Need For Insurance In The Cryptocurrency Space

At present, the crypto business wherein it largely comprises of startups as well as exchanges isn’t large enough to give the insurance industry considerable revenues.From publicly available data, even Coinbase, the biggest cryptocurrency exchange in North America, just holds 2% of its digital coins covered with Lloyd’s of London, wherein they are kept in hot storage whereas the remaining is cut off from the internet. Other than that, no other information is available regarding the status of their insurance.

What Concerns Insurance Providers

When volatility or instability of the crypto space is considered, coverage for cryptocurrencies is of importance. The rapid rise in valuation of cryptocurencies especially bitcoin, has brought about massive online thefts on digital wallets as well as exchanges. However, insurers are posed with distinctive challenges by cryptocurrencies. Insurance premiums, usually, are grounded on historical data which cryptocurrencies lack. Volatility or instability in valuations could likewise have a bearing on premiums since it trims down the total quantity of coins being covered or insured. Furthermore, regulatory ambiguity as well as lack of surveillance and management at crypto exchanges could further make matters more challenging for insurers drawn to offering insurance services to the crypto industry.

Posted by Ned Queen in Cryptocurrency, Finance