Crypto Crash Won't Hurt World Economy, S&P Says

Leading international rating agency has dismissed fears about cryptocurrency's potential to crash the global financial system
20 February 2018   554

According to analysts of the leading international rating agency S&P Global Ratings, the talks that the possible collapse of the cryptocurrency market could bring down the global financial system is clearly exaggerated and represents "a lot of noise from nothing." This is reported by Business Insider.

As representatives of S&P note, if the price of the currency falls, this event will have a negligible effect on global financial stability.

In our opinion, in its current version, a cryptocurrency is a speculative instrument, and a collapse in its market value would be just a ripple across the financial services industry, still too small to disturb stability or affect the creditworthiness of banks we rate. If the value of cryptocurrencies dropped substantially, we expect retail investors would endure most of the impact.

Mohamed Damak 
S&P Global Ratings

Regardless of the skeptical attitude towards digital assets, S & P positively assesses the prospects of the underlying bitcoin and other crypto-currency technologies of the distributed registry. Thus, according to Damak, the blockchain can increase the speed and transparency of financial transactions, reduce their cost and even change the principles of the banking system.

Binance to Join Forces With IdentityMind

IdentityMind provides exchanges with ability to comply with KYC\AML worldwide
26 March 2019   79

Binance announced an agreement with IdentityMind, which will help it ensure compliance with regulatory requirements and improve data security.

IdentityMind provides cryptocurrency exchanges with access to the platform, thanks to which they can monitor compliance with customer identification and anti-money laundering requirements in real time. This includes connecting new customers, managing their profiles and monitoring transactions.

The partnership between Binance and IdentityMind further strengthens our compliance capabilities and our commitment to re-invest in the blockchain ecosystem and grow it. We continue to evolve and enhance security systems while adhering to regulatory mandates in the countries we operate in. The goal is to foster greater trust among financial institutions worldwide.

Samuel Lim

Chief Compliance Officer, Binance

Last year, Bloomberg wrote about the Binance user identification system as the least strict in the entire industry, and linked the “level of anonymity” provided by the exchange with the risks of money laundering and market manipulation.

In October, Binance entered into an agreement with a supplier of transaction analysis software on the blockchains Chainalysis, and in November with Refinitiv, which developed an automated solution for client verification.

Whether the ordinary users of the platform will feel the impact of the integration of IdentityMind tools on themselves, the exchange does not specify.