In the crypto space during 2021, one of the biggest problems has been cyberattacks by scammers and hackers. From exchanges to users’ wallets and crypto projects, over the course of the year there seems to be a news headline every other week on how these exchanges and crypto users are losing hundreds of millions of dollars’ worth of digital assets to malicious hackers. AscendEx, BitMart, BadgerDAO, MonoX Finance, Cream Finance, Liquid and PolyNetwork are a few exchanges that have fallen victim to these cyberattacks, losing a whopping combined total of around $1.2 billion to these hackers this year alone. In the whole crypto space, it is estimated that over $10 billion was stolen in DeFi related theft this year. So how is this happening?
Telegram and YouTube are a few of the ways in which hackers are getting into crypto users’ wallets and stealing funds. One of the methods of these scammers is to create a fake profile of a YouTube influencers account and under their videos they will reply to comments claiming that you have won a giveaway and that you must give your wallet details to claim the reward. They will then use these details to drain your wallet and steal your digital assets.
On Telegram, scammers will create fake admin accounts and hide in crypto community groups. When people in these communities ask questions, these fake admin accounts will private message these people pretending to be the admin of the group with solutions to the questions asked. They will state how they need your details to check the problem and then use this information to get into your wallet steal your hard-earned funds.
A rug pull, is another malicious act which is unfortunately all too common in the crypto space. With a rug pull, developers abandon a crypto project and take off with most, if not all the project’s funds. Or they sell off their pre-mined tokens. This drains all the investor’s funds and leaves them with huge losses that cannot be recovered.
So how can you protect yourself?
One of the best ways to protect yourself in the crypto space from hacks and scams, is to ensure that you always do thorough research before investing in a certain project. Read the white-papers, research the team behind the project, investigate their website and social media pages. This can give you a greater understanding of the legitimacy of a project which can protect you from investing in something sketchy that could potentially be rug-pulled, and result in you losing large sums of money.
Another important way to protect yourself is to always keep your private seed phrase in a safe location and NEVER give it out to anyone asking. Your private key is a series of words which is a password to accessing your wallet. The moment a hacker gets hold of this, then your wallet will be at huge risk. It is best to keep this seed somewhere offline and make multiple copies of it to ensure that you are always protected. You should never enter this phrase after following a link or any unofficial websites as they are often scams and are trying to gain access to your wallet.
All legitimate crypto project’s will never ask for your private keys and their Telegram admins will never message you first. If you ever find yourself in one of these situations, delete the website and block the fake accounts messaging you to ensure that you keep yourself as protected as possible and do not lose any money. Simply Crypto Hub offer cyber security services ensuring that our security is top level to keep all our users safe and establish a secure network that everyone can enjoy and gain from
Over the last few years, cryptocurrency has become one of the world’s largest trading platforms. The whole cryptocurrency trading space is currently worth just over $2 trillion. Due to the expansion and consistent growth of the space, governments are now trying to regulate it. The government of the United Kingdom have recently come forth with the proposition to implement a new set of regulations to ensure the “financial safety” of investors involved.
In this article, we will review the impact of implemented regulations by the United Kingdom and other countries around the globe and what effects they might have on the Cryptocurrency space.
Introduction to new regulations and their implementation
The basic aim of the new regulations is to strengthen rules related around cryptocurrency advertisements. Government officials say that there has been a spike in scams and misleading advertisements. Hence, the government’s hands were forced to take some strict steps to ensure the safety of citizens when dealing with cryptocurrency, and related adverts.
Newer laws legislate these misleading cryptocurrency advertisements. This new legislation will bring coherence between cryptocurrency and other financial advertisements ensuring that any cryptocurrency adverts are accurate and not misleading towards the public. Governmental rules are aimed to enhance consumer safety. Despite the new regulations being put into place, the government has cleared the speculation that the regulations are put in place to hinder actual cryptocurrency trading. Chancellor of the Exchequer, Rishi Sunak said: “Crypto assets can provide exciting new opportunities, offering people new ways to invest and transact – but it’s important that consumers are not being sold products with misleading claims.”
“We are ensuring that customers are protected, while also supporting the innovation of the crypto asset market.” HM Treasury
Benefits of the new laws
These laws are related to regulating and monitoring “qualifying crypto assets.” The FCA will formulate and implement the rules the same way as it does for other financial promotions, such as stocks, shares, and insurance products. Regulating crypto-related advertisement is one of the main goals of these new rules.
Crypto-related ads often minimize the potential risks and show unrealistic and overstated benefits of crypto trading. Thus, to make the citizens aware and protect them from falling into the trap, the government will check on crypto-related ads, to keep retail investors safer and make more educated steps into the space. Rules are created to ensure the protection of less aware citizens who may be trying to get involved. Most people fall prey to misleading cryptocurrency advertisements. They are not aware of the high risk factor that is associated with crypto-trading. Thus, these rules are meant to enhance financial safety of citizens and make sure that are aware of all the risks before they invest their money.
The businesses around the crypto trading space will have to be more transparent and forthcoming about their policies. Firms must be more careful about making unrealistic claims in their ads to attract people to crypto trading. This means that crypto businesses with all the correct regulations and legislations in place will be positioned better than those who are not, as the new regulations may cause complications for the businesses who do not have the correct practices in place later down the line.
If you own a crypto-trading business, here at Simply Crypto Hub, we provide services to help you improve your project and ensure that your business has all the correct legal requirements in place to create a regulation sound company. Whether that be security requirements to business planning and the implementation of procedures. We have an expert team with all the necessary skills to assist your business with the implementation of services. We study the current situation and stay up to date with all the recent changes in crypto space. You need not worry about getting caught by changes in the laws and regulations within the space. Our website and service offers will ensure that you do everything by law and guide you through the regulatory process.
Worldwide trends about cryptocurrency regulations
As cryptocurrency becomes increasingly popular every day, governments worldwide are adapting and learning more about them and how they can take control of these digital assets to benefit them.
Although crypto is becoming more popular by the day, mainstream adoption is still yet to fully take charge. Many governmental bodies across the world do not fully understand it. Hence the solid standpoint on implementing, their own regulatory measures on the asset class. Countries such as the USA, Canada and China have all put or began to put regulations in place so that they can try and control the class and gain a grip over it.
Here is a summary of the cryptocurrency regulatory state in different countries as of now.
The US remains one of the more crypto-friendly jurisdictions in the world and has generally maintained a progressive disposition to its regulation.
There has been recent development at state level. Some states like Iowa and Maryland have issued cautions to the public in dealing with cryptocurrencies. They have also prohibited state agencies from accepting cryptocurrency as a form of payment. However, states like Colorado and Wyoming have acknowledged crypto as an instrument of monetary value. Ohio recently started accepting payment of taxes in cryptocurrency.
Different agencies have taken different approach to the definition of cryptocurrencies and its regulation. The Securities and Exchange Commission (SEC) views cryptocurrency as a security. While the Commodity Futures Trading Commission (CFTC) calls Bitcoin a commodity. The Treasury department calls it a currency. IRS treats cryptocurrency as “assets” for taxation purposes.
The White House is reportedly preparing an executive action that will instruct federal agencies with regulating cryptocurrencies ‘as a matter of national security.’ The order would assign agencies to analyse the various forms of digital assets and create a framework for regulation, The idea is to create a set of policies that are in line with the government’s plan for the space.
Canada has a proactive stance towards crypto trading. In 2021, Canada became the first to allow Bitcoin Exchange-Traded Funds (ETF). Moreover, Canada’s Investment Industry Regulatory Organization (IIROC) has clarified that crypto trading dealers and platforms must register with provincial regulators.
China is one of the greatest economies in the world. However, The People’s Bank of China (PBOC) has banned crypto exchanges from operating in the country. They say that crypto trading facilitates public financing without approval. China has also placed a ban on Bitcoin mining. However, they remain the nation with the largest cryptocurrency mining output. The world’s top Bitcoin mining pools all came from China with five pools being responsible for over half of the cryptocurrency’s total hash.
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