One area has been a big issue since the advent of blockchain technologies almost a decade ago; regulations. As most companies shy away from cryptocurrencies due to the KYC/AML compliance procedures, the industry at large is suffering by a lower number of adoptees shying away due to regulatory pressures. More so, the world of cryptocurrencies has long been against the motive of regulation that tie it down to government control or a centralized path rather than the anonymous decentralized systems used today.
Electroneum (ETN) aims to introduce the first KYC compliant cryptocurrency in the system, opening up the crypto world towards complying with regulations. The move has however been termed a risky affair by critics as it could push the ‘die-hard’ crypto fans away from the project. With the coin’s price seeing a further 7% increase in the last 24 hours succeeding a weekly return of 27% on ETN.
Will the latest move by Electroneum to add a KYC compliant cryptocurrency going to benefit the adoption rate of ETN or will it be detrimental to its success in the future?
Positives: ETN rises in price, soar in adoption rates
It is already clear that the news of adding KCY compliance procedures have already started to bear fruits since the announcement was made public. The price of ETN pushed towards the $0.03 USD mark at the start of the month to trade at $0.0278 USD when the announcement became public. The current price of ETN stands at $0.024518 USD, representing a 7.66% gain in the past day of trading. The coin’s position ranking on Coinmarketcap has also greatly improved as it entered the top 100 coins chart at the end of Q3 2018 and currently stands 43rd on the list with a total market capitalization of $198,182,198 USD.
“Working with Yoti and being compliant with KYC requirements is crucial. Our corporate partners want us to be able to prove our currency is only being used for legitimate activities. Now we can, that means we can begin to work with these organizations to integrate ETN as a form of payment.”- CEO of Electroneum, Richard Ells.
Not only will the KYC compliance news push the price of ETN up, but also the adoption of the ETN coin. Most folks have been afraid to join the crypto movement due to the presumable ‘lack of regulation’ in the industry. With Electroneum’s latest KYC compliance, the network will be more public keeping users away from using cryptocurrencies for illegal activities.
Negatives: Rejection from the cryptocurrency “die hards”
As is with almost everything, the KYC compliance measure may not be as beneficial to Electroneum’s plot as stated. First, the whole idea of cryptocurrencies and blockchain was to offer a decentralized platform where trustless, secure and in some way anonymous transactions between peers. However, with the new Yoti Digital ID-inspired KYC procedures on Electroneum, any wallet will be linked to an identity and the amount, not very different to our current banks.
It is a question of how well the community will accept the new compliance rules and with a positive reaction, many coins will follow suit. This will make regulation of cryptocurrencies easier which may well lead to overall global adoption rates improving. The market is responding well so far with the ETN development team hoping for smooth integration of the process.