Swissquote agrees with Goldman Sachs that crypto has been used in Ponzi schemes, money laundering and other dark market functions but fiat currencies can also be used for illicit activities.
Chris Thomas commented:
Banks and enterprises like Swissquote Bank operate to strict AML regulatory levels in both fiat and crypto worlds to prevent such illicit activities. Chainalysis concluded in January 2020 report that only 0.08% of crypto transactions originate from the darkest markets and collectively criminal activity represented just 1.1% of total activity.
Goldman Sachs also stated:
The cryptocurrency infrastructure is still young and susceptible to hacking or inadvertent loss.
Chris Thomas responded:
The crypto-asset infrastructure is still young and many of the companies Goldman Sachs mentioned in the outlook only have a few years’ experience and may have lacked the solid operational security processes.
Companies like Swissquote Bank – a fully regulated Swiss bank with strong operational and security processes – do not have such infrastructure security challenges and are able to serve both retail and institutional clients in a compliant way, in both the traditional and the crypto-asset worlds.
In its outlook, the Swissquote bank notes that investors can chose established financial entities for their transactions instead of exchanges who may not have such a strong regulatory compliance in their processes. The Swiss bank states that the crypto infrastructure in active financial services participants is strong enough for institutional investors to make the same transactions as they would with any other asset class. Fidelity Investments have built Fidelity Digital Asset Services and JP Morgan have the confidence to offer banking services to the two largest crypto exchanges.
Thomas admits that private keys are still challenging for everyone and it is why it is safer for investors to use regulated trading services like Swissquote Bank.
Swissquote Bank has taken steps to support crypto-assets and has expressed its belief that they form the future of financial markets. With the maturing of crypto, the crypto market will become more stable and more accessible for a larger use.
