Hello guys, isn't crypto kind of crazy? Canada just displayed that by laying the hammer down on TradeOgre and seizing around $40 million in digital coins. It was the largest cryptocurrency seizure in Canadian history.
• The exchange was never registered with Canadian financial authorities, and
• The exchange did not ask users for any Know Your Customer (KYC) information, including a user's name or identification.
This is a pretty big deal because if there are no KYC requirements, all trading happens anonymously. This is especially attractive to criminals who carry out money laundering, as it becomes extremely easy.
The appeal? No requirements for identification, no inquiries. Just rapid transactions. Sounds neat, huh? But that same feature led regulators to think it had some "risk" associated with it.
And here is the big question: will the honest traders ever see their funds again? Well, nobody knows. It could take months or years in court.
• Authorities are coming after exchanges. Exchanges with no rules, regulations, and licenses will not survive.
• The issue for privacy versus law is a big question. While some would like total freedom, others would just like to build out laws for juristic.
• You are risking real funds. If you keep your money on unregulated exchanges, you might wake up one day to find you have money gone.
I have certainly used small exchanges myself, as it frustrates me to send multiple documents for the sake of verification. The bottom line, however, is... I used to think: what happens if they are shut down tomorrow?
The advice is to use legitimate exchanges with clear backers and assurances. Remember the TradeOgre failure, one day you are trading the next day your money is unavailable.
What happened?
The police began investigations into TradeOgre after receiving some international intelligence. These investigations revealed that:• The exchange was never registered with Canadian financial authorities, and
• The exchange did not ask users for any Know Your Customer (KYC) information, including a user's name or identification.
This is a pretty big deal because if there are no KYC requirements, all trading happens anonymously. This is especially attractive to criminals who carry out money laundering, as it becomes extremely easy.
What was TradeOgre?
TradeOgre did not operate as a recognizable exchange like Binance. TradeOgre more so operated as a clandestine provider for people looking to trade the niche smaller sized or privacy-centered coins like Monero.The appeal? No requirements for identification, no inquiries. Just rapid transactions. Sounds neat, huh? But that same feature led regulators to think it had some "risk" associated with it.
Why the users are upset
Not every single person using TradeOgre was doing anything wrong. The traders of the world enjoyed it for the fact that it was clean and simple. However, their exchange has now closed its doors and their funds are tied up.And here is the big question: will the honest traders ever see their funds again? Well, nobody knows. It could take months or years in court.
What this really means for you
So since we just analyzed the situation, what can we learn from this?• Authorities are coming after exchanges. Exchanges with no rules, regulations, and licenses will not survive.
• The issue for privacy versus law is a big question. While some would like total freedom, others would just like to build out laws for juristic.
• You are risking real funds. If you keep your money on unregulated exchanges, you might wake up one day to find you have money gone.
I have certainly used small exchanges myself, as it frustrates me to send multiple documents for the sake of verification. The bottom line, however, is... I used to think: what happens if they are shut down tomorrow?
To conclude
The TradeOgre shutdown demonstrates how the crypto world continues to change. Regulation is the goal, whereas some users prefer privacy. Privacy tends to lose in the fight for control of networks.The advice is to use legitimate exchanges with clear backers and assurances. Remember the TradeOgre failure, one day you are trading the next day your money is unavailable.