Ripple News Today – One of the factors that have discouraged government and regulatory endorsement of cryptocurrencies is the that they are decentralised and private. This means that no central authority has power over blockchain technology. This is why some government agencies and anti-crypto public figures have said that cryptocurrencies are used only by criminals who want to evade regulatiory oversight. Members of the cryptocurrency community see decentralised technology as the road to freedom from the shackles of government agencies and corporations. Now, with Ripple’s new deal with Coinfirm, the concept of XRP’s decentralization is threatened.
XRP News Today – Ripple News Today – XRP’s Decentralization Threatened By Ripple’s Latest Deal With Coinfirm
Ripple recently announced a partnership with Coinfirm. With this partnership, Coinfirm will have to provide information about users that will determine if the said cryptocurrency was processed using a technology that was specifically designed to hide the identity of users who are transferring funds to each other. The technology, which is often referred to as mixer, multiples the information of counterparties each time small portions of cryptocurrencies are transferred. The technology doesn’t take into account the source of the funds.
The firm will have to provide information about the source of the funds like whether or not it was sent by an individual or an exchange. It will also have to provide information about if the entity is flagged as a high risk entity or not. After the information is provided, a report will be generated determining whether or not the transaction is high risk on a scale of 0 to 99 with 0 being the lowest and 99 being the highest risk of money laundering. The good thing is that while this system will make XRP FATF complaint, the actual identity of users will not be made public. The CEO of Coinfirm had this to say about the latest developments;
“I won’t know who you are personally. We don’t do any personal data. We argue with FATF that this is completely sufficient, and effectively it is sufficient. Because you understand the profile, you don’t need the data of the sender because your internal systems are not able to process this data. It depends on how the FATF regulations will be rolled out in each country.”
XRP News Today – Ripple News Today – What These Laws Mean For XRP
To reduce the occurance of funding terrorism and doing other illegal things using cryptocurrencies, Coinfirm integrated KYC support for cryptocurrencies in 2016. It currently supports 1,200 cryptocurrencies which now includes XRP. It is in partnership with many major financial institutions across the globe. The CEO said that every cryptocurrency needs to be covered by its AML solution of it is to be valid. But doesn’t having such solutions defeat the concept of cryptocurrencies? Not necessarily.
XRP (XRP) Price Today – XRP / USD
With this contract, XRP users can send money and make investments in ways that are regulatory compliant and without revealing their identities. So, as long as you’re not running shady deals, you have nothing to worry about. Whether anyone wants to admit it or not, regulatory compliance is essential for achieving mainstream adoption of XRP and other cryptocurrencies. So, this may actually be a good thing for XRP.
What do you think about the XRP news today? Will the deal with confirm make things better or worse for XRP? Share your thoughts in the comment section below.