Cryptocurrencies can be a good alternative to conventional settlement processes because they are underpinned by blockchain technology which enables the instant finalization of transactions without the involvement of intermediaries, a new report has said. Some players in the cross-border money transfer industry perceive the blockchain and cryptocurrencies as technologies that can enhance remittance processes.
Cryptocurrencies Eliminate Expensive Practices for Remittance Providers
Using cryptocurrencies for the settlement of transactions can be a useful “alternative to traditional settlement processes,” the latest report by the International Association of Money Transfer Networks (IAMTN) has said. According to the report, this is due to the fact that on the blockchain — the technology that underpins cryptocurrencies — transactions are settled instantly without the need to go through intermediaries like correspondent banks.
The combination of declining correspondent banking relationships and the rising volume of cross-border transactions further accentuates the importance of the blockchain for not only lowering the cost of remitting funds but making the transfer of money across borders much quicker.
“Cross-border transactions can be settled almost instantly, thus obviating the need for pre-funding accounts in receiving countries, which is an expensive practice for remittance providers. A number of businesses, ranging from traditional remittance services providers to cryptocurrency fintechs are using blockchain technology to improve remittance processes,” explains the report.
To buttress this assertion, the report includes the findings of a study by IAMTN which sought industry players’ views on innovative technologies which can improve the process of sending funds across borders. As suggested by the findings, both the blockchain and cryptocurrencies are seen as innovations that “bring [an] infinite number of possibilities in the realm of cross-border payments.”
Open application programming interface (API) and artificial intelligence (AI) are the other two technologies perceived to have the potential to improve the remittance process, the IAMTN study also found. Besides disrupting the financial industry, many of these new technologies can “permanently improve the infrastructure behind cross-border payments, in the interest of end-users.”
Regulatory Uncertainty Slows Adoption of New Technologies
Nevertheless, the report said remittance services providers that are keen on integrating new technologies into their operations often encounter challenges in the form of rigid national regulations or the absence of any laws that govern such technologies. According to IAMTN, the fact that only a few countries regulate the use of blockchain creates “some level of uncertainty for businesses that use, or would like to use, this technology.”
The report also said barriers, such as accessibility, lack of awareness, literacy and trust often work against or make new technologies unattractive even when their use results in significant savings. Therefore, to overcome some of these challenges, the IAMTN urges policymakers to tailor their solutions to these realities.
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Source: Featured Archives – Bitcoin News
South Korea Seeks to Freeze 3,313 Bitcoin Allegedly Linked to Luna Founder Do Kwon
South Korean prosecutors are seeking to freeze 3,313 bitcoins at two cryptocurrency exchanges allegedly tied to luna founder Do Kwon. The coins were moved soon after a South Korean court issued an arrest warrant for the Terraform Labs co-founder. Luna Foundation Guard has denied transferring the coins. Korean Authorities Ask Crypto Exchanges to Freeze Bitcoin […]
South Korean prosecutors are seeking to freeze 3,313 bitcoins at two cryptocurrency exchanges allegedly tied to luna founder Do Kwon. The coins were moved soon after a South Korean court issued an arrest warrant for the Terraform Labs co-founder. Luna Foundation Guard has denied transferring the coins.
Korean Authorities Ask Crypto Exchanges to Freeze Bitcoin
South Korean authorities have reportedly asked cryptocurrency exchanges Kucoin and Okx to freeze 3,313 bitcoins allegedly tied to Terraform Labs co-founder Kwon Do-hyung, also known as Do Kwon. The coins were transferred to the trading platforms soon after a warrant was issued for Kwon’s arrest in South Korea.
On Tuesday, an official at the Seoul Southern District Prosecutors’ Office confirmed to Bloomberg that requests have been sent to the two cryptocurrency exchanges to freeze the 3,313 BTC.
The coins were transferred to the trading platforms from a wallet allegedly linked to Luna Foundation Guard (LFG) that was created on Sept. 15, according to crypto researcher Cryptoquant. The researcher told the publication:
Cryptoquant specified new bitcoin addresses owned by LFG based on transaction patterns, adjacent flows and material non-public information.
However, Luna Foundation Guard denied the allegation Tuesday evening. The group tweeted its treasury’s bitcoin address, adding: “LFG hasn’t created any new wallets or moved BTC or other tokens held by LFG since May 2022.”
Do Kwon Says: ‘I’m Making Zero Effort to Hide’
The luna founder’s whereabouts are currently unknown. He was believed to be in Singapore but the Singapore police force said earlier this month that he is currently not in the city-state. Kwon has maintained that he is not “on the run,” tweeting Monday:
I’m making zero effort to hide. I go on walks and malls.
A South Korean court issued an arrest warrant for Kwon on Sept. 14. He is accused of fraud after the collapse of the cryptocurrency luna (now called luna classic (LUNC)) and stablecoin terrausd (UST). In addition, the country’s ministry of foreign affairs is reportedly planning to revoke his passport.
Moreover, Interpol has issued a Red Notice for the Terraform Labs co-founder. “A Red Notice is a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action,” Interpol’s website details, adding that “Red Notices are issued for fugitives wanted either for prosecution or to serve a sentence.”
Do you think Do Kwon transferred 3,313 bitcoins after his arrest warrant was issued? And, do you think Korean authorities should be able to freeze crypto at exchanges? Let us know in the comments section below.
Source: Featured Archives – Bitcoin News