Is Regulation the Silver Bullet for Financial Malpractice? / What is Financial Regulation and Does it Matter to DeFi?

The text below is an advertorial article that was not written by Cryptonews.com journalists.

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In traditional finance, financial regulation is intended to provide protection, safety and stability for institutions and consumers alike. Organisations such as the Securities and Exchange Commission (SEC) in the US and the Financial Conduct Authority (FCA) in the UK are tasked with policing the conduct of banks, asset managers and other financial organizations to ensure that strict rules are followed and punishments applied when those rules are broken.

DeFi and cryptocurrency more widely has fallen outside the remit of regulation since Bitcoin was first launched in 2009. For more than a decade digital asset holders and service providers have largely been able to go about their business unfettered by the same rules and regulations that fall on the shoulders of JP Morgan Chase, for example; not least because the rules that are set for traditional financial institutions are extremely difficult to apply to digital assets.

Regulation across TradFi, CeFi and DeFi

As anyone who has ever applied for a credit card, bank loan or mortgage will know, the long-arm of financial regulation places a significant emphasis on data collection and suitability assessment. This requires collecting and storing vaults of customer information, running complex individual credit risk checks and ensuring detailed custody, anti-money laundering and transaction regulations are followed – and while this is achievable for JP Morgan, it is less so for many cryptocurrency organizations.

In the world of CeFi, or centralized finance, we are seeing moves in this direction, with Coinbase – one of the largest CeFi exchanges – in regular discussions with the SEC as it seeks to list on the US stock market. However, in the world of DeFi, regulation is anathema to much of what the ecosystem stands for. Built largely on a decentralized, permissionless system of autonomous smart contracts, many protocols do not have the central management required to carry out regulation. Moreover, many DeFi applications don’t ask users for their information (or “KYC”), which is a key attraction for many DeFi users.

Regulation and the regulated

Governments and public-sector bodies often cite seven specific areas as being major goals of financial regulation: investor protection, consumer protection, financial stability, market efficiency, competition, the prevention of financial crime, and fairness. For end users, investor and consumer protection are the most important and refer to the way in which financial organizations should market investment products and communicate with their customers. Rules in these areas generally call for transparency (especially around potential risks of products and investments) and clear, open communication with customers.

This is, few would dispute, a highly laudable facet of regulation that should protect vulnerable customers. In practice, however, it frequently doesn’t. Aside from the sort of systemic failings the world witnessed in 2008/09, leading to USD 321 billion in fines dished out to major banks such as Barclays for LIBOR rigging, regulation often fails to keep out bad actors. In the UK, the “mini-bond” space has been a hotbed for fraud, with more than 11,000 people losing GBP 236 million in 2019 to a company claiming to offer property-backed savings accounts. These savers – largely inexperienced older people – suffered heavy losses and the scandal led to a widespread overhaul of a space with hundreds of similar cases.

Best practice should span all sectors

Despite its failings, however, regulation is important: many schemes such as the UK’s Financial Compensation Scheme (a fund paid for by banks that will reimburse savers in the event a regulated institution collapses) provide genuine protection for consumers, as do imperatives for clear, transparent disclosure about products and services and treating customers fairly. Most importantly, however, the onorousnes of regulation can also help to keep out some of the worst actors who may not have the conviction or capacity to comply with regulation.

As such, YIELD App seeks to emulate the key tenets of prudential regulation across its entire platform and customer service proposition. We provide clear and consistent public information including a product disclosure statement that details our structure, practices and principles and clearly states the risks associated with digital assets. On our site we also host a comprehensive set of FAQ’s along with a 24-hour customer helpdesk to ensure we can answer any customer queries quickly and accurately. YIELD App also seeks to mirror important system-level financial regulation, including well capitalized treasuries and the prevention of financial crime through level 1 KYC. We have also partnered with Merkle Sciences for chain analysis to ensure we comply with the FATF red flag rules and to adhere to our internal KYC/AML policies.

While DeFi is operating independently today, as one of the fastest growing areas in cryptocurrency DeFi is likely to fall under the scrutiny of regulators in the future: indeed, ita seems impossible that a market of 40 Billion USD that is expanding by the multi-millions every day would not. Therefore, it is essential that any organization truly serious about its long-term future as a DeFi service provider operates under the best practices already established in traditional finance. As highlighted above, regulation itself is no guarantee: it is only as strong as those that implement and comply with it, and you don’t have to be regulated to do so.

Clever DeFi Offering Easy Yield Farming for Investors

The text below is an advertorial article that was not written by Cryptonews.com journalists.

Clever Defi

Within the rapidly growing cryptocurrency industry, decentralized finance is regarded as the next financial revolution. Among the defi protocols in the market, Clever DeFi is committed to taking yield farming to new heights.

Yield Farming Made Easy

Clever DeFi is a cutting-edge, unique platform that rewards anyone that holds its native CLVA token. It is designed as a solution to the risks associated with yield farming. It provides a sustainable and profitable system for yield farming.

The protocol does this by integrating a decentralized distribution mechanism (DDM) on the Ethereum based smart contract. The DDM ensures that up to 11% interest is minted every 14 days and rewarded to token holders.

Since the DDM is encoded on the smart contract, it cannot be modified or changed, making it tamper-proof. The rewards are spread across 888 cycles that will take 34 years to complete, which is a long time for investors to make life-changing profits.

Some of the criticism about decentralized finance is it gives whales the power to control DeFi platforms. This is particularly the case with several DeFi projects where the founding team rug pulls by dumping premined tokens resulting in a flash crash in the token price.

Clever DeFi fixed this problem with its zero initial supply policy. This means that the Clever DeFi team did not mine a single token before its launch. So no whale can dump huge chunks of CLVA tokens on the market, which would affect the price. This, in its way, is an anti-inflation method meant to stabilize the price of CLVA in future.

307% Compound Interest In 12 months

Clever DeFi strong points lie in the crazy returns that holders can make holding CLVA tokens. A trader that buys CLVA and keeps for a year will receive up to 307% compound interest within this period.

When you compare this to other DeFi protocols that offer 30-70% and banks that offer 2-5% interest yearly, it is no brainer that investors have switched their attention to Clever since the minting phase began in February.

Clever DeFi also offers truly decentralized finance since it does not request token holders to stake tokens for rewards. There are no conditions and CLVA token holders have the freedom to sell or exchange their tokens without any penalties or lock-ins, which is truly remarkable compared to the norm.

So, in a nutshell, Clever DeFi provides a platform to double your portfolio without locking or staking your tokens.

CLVA Price Bullish after Uniswap Listing

CLVA was listed on decentralized exchange Uniswap on March 17 to a lot of expectations from the crypto community. The token did not disappoint as the price surged following unprecedented demand for it.

Uniswap is the largest decentralized exchange and is known for providing investors the opportunity to buy tokens at their early stages. Therefore, CLVA benefited from the Uniswap effect, with its price spiking by more than 120% in 24 hours.

From its initial listing price of 0.0020 ETH, the price of CLVA token has doubled to a High of 0.0044 ETH on the same day, with more crypto lovers showing interest in the Clever DeFi project.

Investors have expressed their satisfaction with the platform, citing the prospect of earning interests in CLVA tokens and rewards for providing liquidity on Uniswap. Clever DeFi appears to be the next yield farming project to the moon.

The Clever DeFi team has done well to integrate an analytics platform that displays the latest information. The analytics shows the price of CLVA, total supply, countdown to the next cycle, and total market cap.

CLVA will be listed on other exchanges, including CoinsBit in the upcoming weeks ahead. The added listing in future exchanges will lead to more investors accessing the token and increasing CLVA token value.

At the moment, CLVA is only available for trading on Uniswap and P2PB2B.

Summit Mining: Crypto Mining Made Both Profitable & Fair

Disclaimer: The text below is a press release that was not written by Cryptonews.com.

Summit Mining

The cryptocurrency mining space has evolved significantly since its first days, more than a decade ago. However, if you’ve been feeling like you missed out, there’s still time to start and even turn a profit—if you put your trust into a tight-knit community, facilitated by an ethical mining operator where you, the user, own the mining equipment. This is where Summit Mining comes in: in business since the beginning of 2019, the team has been striving to offer a fair, ethical approach to what they call Community Mining that is vastly more profitable to their clients compared to their competitors.

Ownership

The most important aspect of Summit Mining is ownership: instead of you simply renting out mining equipment from them, your investment is used to purchase new hardware that you own—while the company takes care of it. It may not belong to you physically, but once you decide to leave the mining operation, your initial investment is returned relative to the change in price of the hardware purchased with it. This can even mean you receive more than you initially invested, as the price of miners tends to move with the cryptocurrency market and current mining difficulty.

Equity

As mentioned, your investment is used to purchase mining equipment. However, you are not beholden to the very same equipment: your monthly mining reward is given from a pool of all coins mined within the period, proportional with your investment, in a process called resource pooling or mutualisation. This means that no participant has to suffer the consequences of “their” mining equipment not keeping up for any reason—everything that is mined is shared with everyone, and the only factor that can change your due amount is how much you’re investing on a monthly basis.

Transparency

Another important facet of Summit Mining is transparency: instead of navigating complex calculators on cloud miners’ websites (if they offer any calculators at all) while wondering whether and how the return on investment changes with the market, Summit Mining works hard to keep the entirety of their business fully visible to their clients. This includes weekly live meetings in which the team presents their current activities, news, progresses, as well as answers any questions customers might have.

Community

Summit Mining’s approach to business facilitates a vibrant, close-knit community, made up of people passionate about cryptocurrencies. Customers are encouraged to join a very active Discord discussion channel where they can share ideas, answer each others’ questions, and discuss new opportunities.

Five Cryptocurrencies

Summit Mining is currently mining five cryptocurrencies: We are now mining five cryptocurrencies: Bitcoin (BTC), Litecoin (LTC), Dash (DASH), Ethereum (ETH) and Zcash (ZEC). All customers get all currencies in five separate payments at the beginning of each month and then decide what they want to do with them—you won’t be able to choose which currency you prefer. In reality, this is a good thing: with a diverse portfolio, you’re already hedged against market volatility.

Profitability

The volatility of cryptocurrencies means that there is never any guarantee that mining will always be profitable. When using Summit Mining and mining is no longer profitable at all, the worst case scenario for customers is a ROI of 0%. The business itself simply unplugs unprofitable machines until they become profitable again. Customers will never have to pay extra to cover mining losses.

Fees

Nothing is free—but you will be paying significantly less at Summit Mining than elsewhere, along with a much better ROI. Their management fee is 15% of your monthly profit. In other words, if the month was unprofitable, they won’t charge you anything. The company relies solely on this business model, so you will not be surprised by any hidden surcharges or fine print.

Conclusion

Summit Mining is unique in the mining community in that it isn’t really a cloud mining service—you’re not renting mining equipment, you own it outright, but it’s kept in a professional environment and hand-selected by veterans of the niche. In other words, you get all of the benefits of cryptocurrency mining without any of the hassle that usually comes with machinery upkeep, electricity bills, and the speed at which some mining hardware becomes obsolete. Joining a progressive-thinking company such as this puts you at the front of a fast-evolving industry still in its infancy—all you have to do is give yourself a chance.

Visit Summit Mining (https://summitmining.io) and use special code CRYPTONEWS to get 30% off your management fees during 6 months!