InCore Bank Brown Bag Lunch on Cryptocrime
In recent years, cryptocurrencies such as Bitcoin and Ethereum have gained enormous popularity. More and more people are choosing to invest in cryptocurrencies and use them as a means of payment. While the benefits of cryptocurrencies are obvious, there is also a downside: the rise of Crypto Crime. Crypto Crime includes all illegal activities that take place in relation to cryptocurrencies. This includes, for example, fraud, theft, money laundering or extortion - similar to the traditional financial world.
In her presentation, Aline Renda discussed some examples of such illegal activities. For example, there have been some fraudulent Initial Coin Offerings (ICOs) where investors put their money into new cryptocurrencies, but which later turned out to be a scam. Some ICOs were exposed as Ponzi schemes, where new investors were paid with money from older investors. As a striking example of such a Ponzi scheme, Aline Renda explained the "PlusToken" case, which captured around $2.9 billion from investors and went down in history as one of the biggest cryptocurrency scams: China-based PlusToken presented itself as a cryptocurrency wallet that would reward users with high returns if they purchased PLUS cryptocurrency tokens linked to the wallet using Bitcoin or Ethereum. PlusToken was later listed on several Chinese exchanges and reached a peak price of $350, with millions of people investing in it. PlusToken had a large following in Korea and China - especially among investors who were unfamiliar with cryptocurrencies.
While the talk highlighted a variety of threats related to cryptocurrencies, it also emphasized that this does not represent the entire crypto world. Innovative solutions were also discussed. For example, Aline Renda also explained that governments and institutions around the world are increasingly recognizing the benefits of cryptocurrencies and are creating regulations and taking measures to increase security and transparency around cryptocurrencies.
Switzerland is unique in its approach, as it has progressive DLT legislation. FINMA also addressed the issue early on and issued binding regulations that apply to all crypto service providers, particularly with regard to money laundering. Customer investments are also particularly protected at banks due to regulation analogous to securities. InCore Bank has a banking license and is therefore subject to prudential regulation by the Swiss Financial Market Supervisory Authority FINMA. In simple terms, this supervision aims to protect creditors, investors and the system and ensures that the financial, legal and regulatory requirements are always met. Such legal frameworks create a solid foundation for the further development and mass adoption of cryptocurrencies.
In summary, the brown bag lunch was an extremely informative insight into the world of crypto crime for all employees. Although Crypto Crime is a serious topic, the presentation showed that the crypto world also has many positive aspects and a promising future ahead. It is undeniable that crypto is shaping the digital future. However, every investor should be aware of how to keep their own cryptocurrencies safe and secure in order to fully realize the potential of cryptocurrencies while fighting crypto crime. To learn why you should keep your Bitcoin in a regulated bank, see here.
