The true meaning of decentralisation might be that a decentralized currency actually does require centralization. CoinTelegraph speaks to Brandon Kostinuk of the Vanbex Group to look into the “common confusion”.
It is Kostinuk who calls it “a common confusion”. He explains that in the financial world the realization of a decentralized system, one without a central clearing house or authority to act as the intermediary between transactions , is an ideal proposition for anonymity and personal privacy .
Kostinuk argues that the above described arrangement is not a practical approach to financial governance in the 21st century, not with data already present on money laundering and other illicit financial activity. Top 10 highest risk countries
In its 2015 Anti-Money Laundering Index, the Basel Institute on Governance , an independent not-for-profit competence centre that specializes in corruption prevention, public governance, anti-money laundering and more, reported on the the risk of money laundering and terrorist financing of countries worldwide.
The Basel Institute used 14 different indicators that deal with Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regulations , corruption, financial standards, political disclosure and rule of law to aggregate an overall score, which is then used to compile an index rated from highest risk to the lowest.
In examination of the top 10 on their list, the Basel Institute concludes: “The majority of high-risk countries are characterized by intrinsic weaknesses in both preventing and enforcing multiple aspects of the AML/CFT framework.” Reasons raised refer to structural and functional vulnerabilities such as high rates of perceived corruption, lack of judicial strength, but also, and most relevant to the subject here, a lack of resources to control the financial system, and lack of public and financial transparency. Bitcoin must be regulated and overseen in order to survive
Kostinuk points out that to enable the kind of security […]
