To date, cryptocurrencies have predominantly been bought and traded as speculative investments, rather than as a means to purchase products and services.
The extreme price volatility-sometimes fluctuating by double-figure percentages in a single day-is fuelled by speculation rather than real-world developments and the relative infancy of the underlying technology, regulations and governance affects one of the paramount characteristics of a currency: its stability.
Instability is a big hurdle to overcome on the road to mass adoption and the stablecoin concept is rapidly evolving as a solution to this problem.
The concept of custody for cryptocurrency divides opinion, predominantly between industry stalwarts and new crypto users. The phrase “not your keys, not your crypto”, popularised by crypto evangelist Andreas Antonopoulos, regularly appears in comment sections and on social media about the topic. According to its proponents, if you do not have full sovereignty over your crypto assets, then someone else owns them.
Ultimately, the decentralised nature of crypto means the holder can define their own level of autonomy over it. You can assume full responsibility for your assets and be your own bank, entrust them with a custody provider or…
All views expressed in this piece are those of the author and do not necessarily reflect the official policy or position of Torca or any of its employees.
Bitcoin was designed for pure decentralisation and the sovereignty of its holder and since its birth, over 2200 more cryptocurrencies have been minted. It’s widely agreed that virtual assets will be the future of money.
However, the transition to that point from a post-economic crash counterculture is a long and winding road. The centralised economy benefits from decades of legislation and regulation and the security that offers; crypto evangelists seek the…
The general perception of the crypto asset space to date has been one of high risk and high reward. The rise and rise and then sharp fall in cryptocurrency prices last year combined with the furore surrounding Initial Coin Offerings saw a rush of early adopters into this application of blockchain technology, but investor losses were incredible and cases of fraud and near-fraud were abundant.
Ensuring that crypto assets are uniformly defined and that those representing or equivalent to financial instruments are properly regulated, is therefore vital for the progression of the sector. Regulators in many jurisdictions recognise the high…
As the crypto asset market matures, the need for international standards becomes yet more apparent. I am therefore very pleased to announce that Torca has joined Global Digital Finance (GDF), the independent body driving best practice, standards and a Code of Conduct for the crypto asset industry.
Regulators in a number of jurisdictions have taken a proactive approach to crypto assets, regulating them according to their domestic legal frameworks. However, the global nature of Distributed Ledger Technology (DLT) requires a borderless toolkit. …
The FCA has announced that Torca will join the fifth cohort for testing in its regulatory sandbox.
We consider that maintaining an open and transparent dialogue with our regulators is a key part of being a responsible developer of Distributed Ledger Technology (DLT) and crypto asset-related activity.
We view our ability to test in the FCA’s regulatory sandbox as being of great value, in that as a participating firm we will have access to the regulatory expertise, guidance and tools required to thoroughly test an innovative new DLT product — with real consumers — in a live, customised and controlled…
Head of Marketing at Torca