Regulations in Cryptocurrency : Interview with Mike Cowans from CipherTrace ②

We had an Interview with the World-wide famous Anti-Money Laundering (AML), Cryptocurrencies Forensics and Blockchain Threat Intelligence company, CipherTrace. Mike Cowans shares his thoughts about Cryptocurrency and Money laundering, regulation and much more. Please have a look.

Mike Cowans (Regional Director at CipherTrace)

Interview Date :10th January 2020

Truth of actions behind the Data

We don’t just build a big data platform. We have to have the engines needed to figure out the algorithm in order to process the data in a very accurate and efficient way. It does require a lot of data from a lot of data sources. When you start to take in and adjust that amount of data and try to get some perspective of, it becomes a challenge. Every week CipherTrace is taking in 1.5 to 2 million data points, and this has been going on for the past 5 and half years. The data is still accumulating and piling up as we are talking now. The data will continue to compile, so you really get an idea of how much there is to process.

In order process that, we have built an AI machine learning on top of that data, and developed algorithms that process through all the data from different sources in an accurate and efficient way. Any solutions of CipherTrace will be as good as the data that has to efficiently and accurately be processed through AI and the validity of the data information. The more accurate the data the more powerful the outcome will be. That’s really how we have designed our system ; big data processed through artificial intelligence machine learning algorithms coupled with some of the industries most qualified data analyst.

Increase of Cryptocurrency Value

Everybody has their favorite type of coin, but I think whether it’s going to determine how any cryptocurrency grows is going to have use-cases behind it, and the use-cases that are built around it. The reason I am focused on use-cases is because that drives it to mainstream adoption. Obviously, that will also drive more demand for the coin. Bitcoin, Ethereum, XRP, Litecoin and others are assets that have a number of use-cases around and with time have had  a number of valid use-cases . I am quite sure we are going to see many tokens and cryptocurrency to disappear, and some already have due to not having any use-cases and no demand. However where there is demand and valid use-cases, the value of that coin will definitely increase.

A Year of Development and growth

2019 was an interesting year of continued development and growth. 2017 and 2018 were referred to as Crypto winter by a lot of people, but last year the market really opened up. In the past years there was uncertainties, and lack of regulations. We were still trying to figure out things like “What is a Security?” “are regulations needed?” etc. So if you have uncertainty in the market you will have volatility as well. However, we have seen regulation and regulators have become more active making the market to some extent more stabilized. Regulators are more active, and we have seen global regulatory bodies focus on cryptocurrency which the focus had not been there before. We also saw an increase in different type of cryptocurrency businesses as well as new use-cases. So, I think all in all I would call the year 2019 of development.

The most developed Country in terms of Regulations in Cryptocurrency

Which one is the most developed is hard to say. I think there are different approaches. The US and Japan are obviously very developed in terms of cryptocurrency regulations. I absolutely think that regulations are good thing, because you can’t have an asset of value without legitimacy. So, without regulations you basically would have chaos, so it is much needed. Without regulations you cannot have legitimacy on a global scale, so it has been need for a while even though there are some critics about whether it should be or shouldn’t. So I believe that any asset of value of any kind should have some kind of regulations.

Decentralization and Regulation hand in hand

I believe that decentralization and regulation can be symbolic and go hand in hand. Decentralization helps solve issues of centralized systems and one party mindsets. So when you start to go away from single party controls, you starting moving away from single party failures, and this is what the cryptocurrency industry is very focused on. However, I don’t think that this alone should be the reason for us to move away from regulations. It just requires a new perspective on cryptocurrency and other new systems. We start to see regulators notice those things and develop regulation policies that fit this industry.


Interviewer , Editor : Lina Kamada



The Article published on this our Homepage are only for the purpose of providing information. This is not intended as a solicitation for cryptocurrency trading. Also, this article is the author’s personal opinions, and this does not represent opinion for the Company BTCBOX co.,Ltd.