In the world of digitalization that we are living in with these days, a bank is one such important institution of finance that holds the authority to receive the deposits, make fund transfer, and even store the money for the clients. Bank has the authority to legally offer the right to exchange one currency of fiat for another one to its customers. Talking of digitalization, well it is a cryptocurrency exchange that offers a similar kind of banking to the clients along with the exchanges function that is the same as to the stick exchange.

Know more about a cryptocurrency exchange

This is not completely illegal but at the borderline, it is one that is used for the online marketplace practice. In this, the customers use the exchanges of digital asset for the other one depending on the price of the market for the assets that are given. The problem that usually comes with cryptocurrency exchange is that it facilitates unregistered securities trading. It is used for laundering the money and comes with certain specific be it the KYC or AML so that they will be able to evade the law.

The exchanges of cryptocurrency play an important role in the ICO boom in the year 2017. The exchanges of cryptocurrency were keen for the projects that are no model of the new business future to launch the same or even the product. This way they will be able to list down all the projects on their respective exchanges and thus rake down quite the dollars in the transaction fees from the trading pairs too. In another way, it is more like a bucket shop.

Features that you need to know:

There are some features that make cryptocurrencies unique over other digital currencies. Talking of which some of them are:

The cryptocurrencies are the tokens and coins that come with no specific purpose. They don’t really have the utility and are created for nothing more than the speculative reason

Unlike other currencies of tokenization, the cryptocurrencies don’t have to work with the law. Rather there are some cryptocurrencies that are made for law evasion. There are privacy coins that are designed more specifically for facilitating the crime. For this obfuscation, the path a transaction has traveled right from sender to the receipt.

Ideally, cryptocurrencies work as the tool for many fruas as well. That is why, when you plan to deal with any of such exchanges, it is important to proceed with caution.

Shivangi Mujumdar

CBW - External Analyst

INDIA