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Darkmarket

Darkmarket is a marketplace for the sale and purchase of illegal drugs. It also facilitates illegitimate activities. The transactions in Darkmarket happen through the Darknet. Bitcoin is the medium of exchange in Darkmarket. Bitcoin was always associated with the Darkmarket. But the owner of bitcoin is very difficult to trace.

The operation

German authorities seized the world’s largest Darkmarket place for drugs. Europol said that the operation was successful. This operation provided new dimensions to solve cybercrime. The operation was well co-ordinated by international agencies. The operation involved law enforcement agencies from multiple countries. The countries are Germany, Australia, Denmark, Moldava, the UK, and the United States. It got support from Europol as well. A cybercrime unit led the operation. A 34-year-old Australian citizen got arrested by the local law enforcement agency. The task force believes him to be the site’s mastermind. The main suspect declined to speak anything. He was under pre-trial detention. 3 Dutchmen, 3 Germans, and a Bulgarian provided the infrastructure for these activities. They got arrested in September 2019. They were on trial since October last year.

The department located and seized the site’s servers. He got arrested near the German-Danish border. The number of servers found in Moldava and Ukraine is 20. The expectation is that the data from the server will help to uncover more criminal networks. It will provide new leads to catch moderators, sellers, and buyers of the marketplace. Now, the focus is to understand the ways vendors are using new technologies. New technology like cryptocurrency got used for any illegal purposes.

The findings

The Darkmarket allowed its users to do a lot of illegal activities. It facilitated the sale and purchase of illegal drugs. It is a marketplace for counterfeit money, stolen credit, and debit card details. Computer malware, anonymous SIM cards also got sold here. It has 500,000 users and 2,400 active vendors. All the illicit items got sold and purchased through cryptocurrencies. So, it ranked up to 320,000 transactions. Payments made are through 4,650 bitcoins and 12,800 Monero. The estimated value is more than $170 million at present.

Bitcoin’s History

Bitcoin has a history of getting involved in illegal activities. Most of the transactions in the darknet happen through bitcoins. Illegal vendors on the Silk Road marketplace favored bitcoins. Silk Road was the largest darknet marketplace in the world for many years. It got shut down by the US Federal Bureau of Investigations (FBI) in 2013. The FBI seized 144,000 bitcoins from Silk Road. It was worth $3.6 million at that time.

The hope in future

Cryptocurrency is a growing industry currently. Many reputed investors are putting their money in it. So, law enforcement agencies are also getting active in this industry. Many believe that the involvement of law enforcement agencies is a positive sign. This shows that law agencies should make strict regulations for this industry. It will help to reduce criminal activities and streamline the legal framework.

Recently, there is a high boom in cryptocurrencies. Many big investors are looking forward to encashing this opportunity. Cryptocurrency can provide high returns in a short period of time. This is definitely a lucrative offer for many corporate and investors. People are trying to derive huge profits from this situation. In all this, the Financial Conduct Authority (FCA) warns all crypto investors. It says people investing in cryptocurrencies are at risk of losing their money. It warns the people running after higher returns in a short time. The investments and lending products related to cryptocurrency are at very high risk. It made people aware of the frauds happening with cryptocurrency. Due to high volatility, crypto frauds are most likely to happen.

Message from FCA

The FCA is fully aware that few firms are taking advantage of this situation. Due to this, few firms are promising higher returns to their customers. Some firms are offering very good offers for investment in crypto assets. This is also related to lending and investments linked to crypto assets. The FCA stated that people investing in these types of products should be ready to lose their money. As crypto assets are high-risk commodities, people should be aware of them before investing in them.

The market condition

Bitcoin is reaching new heights recently. Last week, it’s value is at $41,973. Other cryptocurrencies are also surging in their value. There is a sudden increase in its value. So, there is a huge demand for cryptocurrency in the market. Investors are comparing it to gold in terms of valuation. Many experts claim that the wild rise of bitcoin could be a market bubble. Moreover, due to its volatile nature, the market bubble is going to burst very soon. Bitcoin has been increasing in its value in the last 12 months. It is over 300% rise in the last 12 months. Bank of America mentioned this market situation to be the “mother of all bubbles”.

The policy

The FCA is showing its concern and trying to protect the investor’s money. So, it provided a few guidelines. All the firms offering these products must meet all the regulatory requirements. The authorization of the firms with FCA is also a requirement. If any firm is operating without registration, it is a criminal offense. From 10 Jan 2021, the firms registered with FCA should tackle risks with money laundering.

Steps to follow before investing

The FCA mentioned a few steps to follow before investing in cryptocurrency. Also, the customer should be able to identify if someone contacted him suddenly. The customer should be able to figure out if someone is trying to pressurize him to invest quickly. The customer should sense if the scheme is too good to be true. Before investing, the customer should check if the firm got registered with FCA. If the firm is not registered, then the customer should question the legality of the firm. The reason is, after 10 Jan 2021, the firm will be operating illegally, if not registered with FCA. So, customers should be fully aware of the risks involved. They should also perform a few checks before investing.

New restriction

Bitcoin recorded its all-time high a few weeks back. It is gaining more investors day by day. It is in demand right now. From corporates to big investors want to cash on this opportunity. While Bitcoin is reaching new heights, shocking news came. Some banks in the UK decided to impose new restrictions on Bitcoin holders. This is applicable to all cryptocurrencies. This is first reported by The Sunday Times. Now, the banks will not accept any kind of transactions from Bitcoin exchanges. The banks will

not allow Bitcoin, Ethereum, and other cryptocurrencies. The banks will not accept any deposit from a crypto wallet into their bank accounts. The investors in the UK will not be able to buy cryptocurrency using their credit cards. Few big banks are also included in this list banning cryptocurrencies. One of the big banks is HSBC.

Its impact

HSBC is one of the largest banks in the UK. So, there is a high chance of impacting a large number of crypto holders. As per the new restriction, many investors in the UK will have to suffer. The investors will face a lot of problems, those holding with cryptocurrency. In addition to the above, there are a few more restrictions also. The users are not allowed to use their debit or credit cards for the purchase of any cryptocurrency. This will have a larger impact on the banking system in the UK. This is also a major setback for cryptocurrencies. It is bad news for the crypto world and its believers. Ran Neuner is a trader as well as the host of “Crypto Trader” at CNBC. He said that due to this restriction, many banks will run out of business. This restriction will have a negative impact on Bitcoin and cryptocurrencies. This may stop the surging value of Bitcoin for some time.

Strict measures against cryptocurrencies

From the beginning, the UK didn’t extend its support towards Bitcoin and cryptocurrencies. The UK is one of the hostile countries for the crypto industry. It is majorly for the retail investors holding cryptocurrency. The trading in BTC-based financial derivatives and cryptocurrency got banned in the UK. It happened in October 2020. This is as per the decision by their regulatory body, the Financial Conduct Authority (FCA).

FCA’s take on this

The Financial Conduct Authority (FCA) claimed that it is protecting the investors’ money. As per FCA, Bitcoin and other cryptocurrencies are assets that are not worthy of trust. It also considers that cryptocurrencies are prone to financial crime. Someone might be using it for illegal purposes. Accordingly to the US Treasury, cryptocurrencies are assets. But its usage could be for illegal and illicit activities. The Financial Crimes Enforcement Network (FinCEN) came up with a new regulation. This new regulation is against Bitcoin’s so-called “unhosted wallets”. This new rule by FinCEN received opposition from the complete crypto world. All these restrictions will create major complications for crypto holders. These restrictions could impact the new advancements happening in the crypto industry currently. However, regulatory bodies are trying to save the financial world.

The crypto world is growing day by day. More and more people are joining the crypto world every day. The value of cryptocurrency is reaching new heights. Big corporates to multi-millionaire investors are putting their money in it. Cryptocurrency is the next big thing. Many new investors are willing to get higher returns from it.

The interest in cryptocurrency is increasing. More people are showing their belief in digital currency. So, people are trying to cash on this opportunity. For buying and trading in cryptocurrency, one needs to choose a cryptocurrency exchange. A cryptocurrency exchange is an important platform for all cryptocurrency holders. Choosing the right cryptocurrency exchange is a vital step. Below is the list showing important aspects while selecting a cryptocurrency exchange.

Security

Security is the most important concern when it comes to cryptocurrency. Also, security is the primary aspect while selecting a cryptocurrency exchange. So, one has to do a lot of research before selecting an exchange. It is essential to choose a legitimate and secure platform for this purpose. Recently, there are a lot of scams that are coming into the picture. So, an authentic and safe cryptocurrency exchange is the only option.

Purchasing method

The method of purchasing and transacting differs among multiple platforms. Different exchanges have different ways of accepting deposits. Some accept bank transfers and some accept PayPal. If one is new to this crypto world, one has to choose the exchange accepting fiat currency. Moreover, the transaction time also differs between different platforms.

Supported tokens

Most of the cryptocurrency exchange support Bitcoin and Ethereum. There is a long list of digital currency present in the market. Binance supports a long list of altcoins. Coinbase supports only four cryptocurrencies. So, this is also a vital factor while making a choice.

Trading platform / P2P exchange / Broker

There are three types of cryptocurrency exchange. The trading platform is very common. Here the users place their orders for buying or selling cryptocurrency. P2P exchange is a more open type of exchange. Here the buyers and sellers interact directly and trade among themselves. Cryptocurrency brokers are different from the above. Here the brokers fix the price and the buyer can purchase as per his choices.

Fee structure

The fee structure and the transaction fees also vary among platforms. This is also a critical aspect. Some exchanges offer discounts. While some exchanges charge for trading, but the purchasing of tokens are free. So, exchanges have a variety of offers. Therefore, you should choose based on your requirements.

User interface and user experience

Another important aspect is the user interface and its functionalities. The interface should be user-friendly. From new to seasoned users, the user interface plays an important. It is essential for the user to understand the functionalities and use them at his convenience. Moreover, different people like different interfaces. Mostly, the exchanges with the best user experience see maximum growth.

So, the above-mentioned points are important while selecting a cryptocurrency exchange. All exchanges are different and they have different offerings for the users. So, it is important to understand your own priorities before selecting an exchange. It is good for one to choose an exchange that suits his criteria best.