In 2020, the cryptocurrency and blockchain industries have experienced record-breaking growth in their technology and users. Crypto-economy analysts have claimed that the number of unique users in the cryptocurrency industry has increased from 35 million to 100 million in only 2 years time.
Now that the entire world has witnessed the potential of the cryptocurrency world, countries are lining up to adopt crypto-blockchain technology. The reason for the adoption is its reliability and mechanism that has the potential to smoothen the transaction flow across the borders.
Many countries from Europe have started introducing digital asset laws in recognition of the crypto-blockchain industry. Every week, there’s a new country passing a law and inducting the crypto-technology into their legal and white-listed assets.
Since 2009 when the first-ever cryptocurrency (Bitcoin) was launched, more than six thousand cryptocurrencies have been introduced till now. However, with such a huge amount of growth and development, problems are bound to emerge from time to time.
The same is the case with cryptocurrency as almost every single day, the cryptocurrency industry is met with a crypto-scam or a fraud. The year 2020 alone has broken all the records that the crypto-scams used to hold in the past. The main reason behind such an increase is the COVID-19 that has made people desperate. People are eager to find jobs to keep their families provided with all the utilities and most importantly, food.
Just recently, the entire cryptocurrency was shaken by the Onecoinponzi scheme causing people to worry about their own crypto-assets and securities. This is where the centralized financial sectors and world economy criticize the decentralized nature of the cryptocurrency.
Many countries have even imposed KYC protocols to keep a track of money laundering. However, it was recently revealed that crypto-exchanges are deliberately ignoring instructions from the administration.
As a result of the onecoinponzi schemes, many victims from Europe have now come out to take a stand against such acts. They have joined hands and filed a petition in the European Parliament to establish a process that can compensate victims for the lost funds.
It has not been the first time when the victims of such Ponzi schemes proposed to file a petition in the European Parliament. The petition demanded the same regulatory structure as it is now but in the past, all they received was a negative response from the EU Commission.
However, this time, the victims and the supporters of the proposal for the crypto-scam compensation funds are hopeful. The reason behind their confidence is the stance that the EU now has against the cryptocurrency and blockchain industry. As per the EU, a regulatory framework is very important in order to tackle crypto-scammers and bring them to justice.