Blockchain Analytics to Help Curb Crypto Misuse, Says HashCash CEO
Since the crypto industry is growing at a frantic pace, blockchain analytics can help fill the void of curbing money laundering and cybercriminal activities, according to Raj Chowdhury, the CEO of HashCash Consultants.
“There has been a conscious effort in implementing stricter crypto regulations worldwide. Blockchain analytics will play a crucial role in decision-making processes for organizations dealing with crypto and blockchain technology,” said Chowdhury. Blockchain analytics is believed to be constructive in establishing order and propelling sustainable growth in the crypto sector.
Blockchain analytics render actionable insights that help enterprises comply with regulatory protocols regarding cryptocurrencies. Chowdhury said:
“The playing field required for innovation must not compromise the achievements we have made so far. Like any technology, blockchain is not immune to misuse. Hence the regulation is a necessity not only for AML compliance but also for developing blockchain research and the global crypto-community.”
As the cryptocurrency space continues grappling with the challenge of various lending and DeFi projects facing bankruptcy, Chowdhury has advocated the importance of crypto education when averting high-APY DeFi scams.
Rand Low, a quantitative risk modeller and senior fellow at the University of Queensland Business School, recently highlighted the importance of regulation and capital controls in fast-growing crypto lending platforms.
Low acknowledged that this would prevent depression and crashes in the market because the uncertainty rocking crypto lending entities like BlockFi, CoinLoan, and Celsius Network was causing panic selling.
A recent Wall Street Journal (WSJ) report disclosed that Celsius took more risk than it could handle because it had a total asset base of $19 billion. In contrast, its equity contribution was pegged at just $1 billion. Therefore, blockchain analytics can help prevent such trends by rendering more transparency and insights.
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