Boost in Cryptocurrency Education
2021 is considered a golden time for cryptocurrencies as the industry experienced significant rise in value as well as adoption. Governments and individuals are starting to realize the potential of blockchain technology, the driving force behind cryptocurrency.
It’s expected that in the first quarter of 2022, learning cryptocurrency trading and mining education will become the norm, as colleges and universities are all set to come up with blockchain courses. Moreover, virtual asset trading has become a piece of cake as tech companies have developed heaps of trading platforms and applications. Crypto enthusiasts can expect simpler approaches of trading and investing in fiat currency and converting it back into the local currency.
Reduction in Crypto Frauds
Due to its anonymity and decentralized nature, cryptocurrency is considered a haven for criminal activists. 2022 will be the year in which countries will adopt effective and stringent regulations to monitor crypto trading and transactional activities. These efforts are expected to reduce cryptocurrency scams and make transactions more transparent.
However, the recent multi-million dollar Squid Game token scam has also opened the eyes of regulatory bodies to make regulations more rigid and strict, to assure that investors don’t fall prey to the fraudsters. By building a compliance regime, suspicious transactions could also be traced and heaps of bogus schemes can be effectively exposed.
Therefore, global financial regulators, crypto market representatives, judiciary, and financial organizations need to get on the same page, collaborating with each other to ensure that the criminals don’t go unpunished. If this happens, the crypto scam statistics will be quite less in 2022.
Digital Currency Savings Accounts will Become the Norm
Bitcoin, Ethereum, and other Stablecoins can easily be staked on crypto saving accounts to yield passive income. Crypto analyst has said that staking will gain importance in terms of revenue for the investors as well as the exchanges. Currently, $9 billion in revenue is being generated annually from cryptocurrency staking.
However, once Ethereum 2.0 is launched, it will increase the staking adoption. This will eventually grow the staking revenue to 20 billion and by 2025 this could touch $40 billion. Staking is the new asset class that will trend in 2022 to use idle cryptocurrency to earn money.
The Year of Bitcoin ATMs and Successful Crypto Brokers
From senior financial analysts’ predictions, it’s clear that cryptocurrency trading will be quite easier in 2022. This is the fruitful result of Bitcoin ATMs installation around the globe. By utilizing digital currencies in the real world, governments and individuals can understand the power of cryptocurrencies. As cryptocurrency adoption and usability will increase in 2022, it will be a new dawn for crypto brokers. They will introduce interactive features and services to capture customers’ attraction.
AI-Backed Identity Verification Systems
Like financial institutions, cryptocurrency exchanges are becoming the primary target of fraudsters. Crypto dealers are finding it hard to differentiate between a fraudster and a legal entity. To secure their interest and develop a fraud-free crypto space, digital identity verification solutions are becoming a necessity. As per regulatory obligation, crypto exchanges must implement ongoing monitoring mechanisms to determine suspicious activities. Apart from that, transactions also need to be verified. This can be made possible by incorporating an AI-backed ID verification system. Anti-money laundering screening is also mandated for crypto businesses. With the help of IDV crypto exchanges can simply screen the customers against the global watchlists, sanction lists, and PEPs lists.
Video KYC for Crypto Exchanges
As digital payments are in demand, criminal activities like bogus schemes, money laundering, and terror financing are skyrocketing. Having decentralized nature is becoming an avenue for fraudsters. Digital crypto exchanges and wallet services provide the need to assure that the people utilizing the services are not criminals.
However, to determine the real identities, video KYC verification is an ideal solution. The virtual asset service providers can authenticate customers over a live video call including, identifying the legitimacy of government-issued ID documents, submitting a facial image, and providing personally identifiable information. By doing so, an authenticated profile can be developed against the customer that can be allowed to carry out transactions seamlessly.
