Do Crypto Payment Restrictions Undermine Blockchain’s Core Values?
Gareth Jenkinson's original article for cointelegraph.com reduced by 52%
Below are various examples of similar instances from the past and why it's important for users to understand how much power they have over their cryptocurrency that is being held by exchanges, wallets and payment platforms. The majority of cryptocurrency exchanges and payment platforms are centralized organizations that store, process and manage user funds on behalf of their users. Users become dependent on their crypto exchanges when trading or transacting with their assets.
While these types of situations seem more likely to be enforced by centralized exchanges, decentralized exchanges still have some influence over user activity on their platforms. The harsh environment has forced the closure of cryptocurrency exchanges and payment platforms, with individual users having to resort to peer-to-peer or over-the-counter trading, which has also been deemed illegal in the country. One of the most lucrative acts of theft involved Japanese exchange Coincheck back in February 2018, during which more than $500 million worth of NEM tokens was stolen from one of the exchange's hot wallets after hackers gained access to the private keys.
One of the first points of action taken by the exchange was to completely block all transactions as well as withdrawals, leaving its users unable to access their own funds on the exchange.
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CN [too long; didn’t read]
Summarised crypto news.