Friday, October 23, 2020

Nauticus CEO says ‘regulation is the only way to protect against scams’

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The Great Financial Crisis of 2008 came about through poor regulation of financial institutions, as multinational banks traded ever more complex financial derivatives.

Ironically, the fallout from the GFC spawned Bitcoin, created by those dissatisfied with the existing financial order. But the subsequent lack of regulations surrounding digital currencies has led many to disaster.

“Poor regulation enables corruption to flourish,” explains Nauticus CEO Bryan Ng. “We’ve seen pyramid and Ponzi schemes like BitConnect, which promised interest of 1% a day along with various ICO exit scams.

“Unregulated exchanges are often hacked or shut up shop without returning users funds. In the EU in January alone, almost 700 scams netted $50 million in a single month,” he said.

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The international response is divided between countries that allow a free for all and those that impose draconian bans. A handful of countries, including Switzerland, Malta, and Australia, have embraced well designed regulations that encourage innovation while protecting users.

Melbourne’s Nauticus Exchange is a digital financial marketplace offering 17 currencies and AUD. The founders have prioritised building a solid foundation of security and compliance for their globally focused business. This will be key as the company moves into securities trading, FOREX, and international remittances.

This focus on ethics and compliance will be no surprise to anyone who has met Ng, a licensed accountant (CPA) who runs accounting firm First Accountants.

Chief Operating Officer Jonathan Chang is a former ANZ banker with extensive experience in Anti Money Laundering and Counter-Terrorism Financing regulations.

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“Verifying every user helps fight corruption and criminality, and not only protects the business but protects our users themselves from fraudulent practices,” he said.

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