Hype Around Unhosted Wallets
Every now and then, opportunistic people join forces to build hype around a compliance topic with the aim of creating confusion so that they can swoop in to “save” you. Today, I’m going to explore why the current hype around unhosted/private wallets is a perfect example of this kind of unjustified hype.
If you found value in this episode, I would really appreciate it if you could leave a review! My mission is to help and support as many FinTech startups as possible, and when you leave a positive review, more people can find this podcast and help their companies! If you are on Apple, just click here to review, select “Ratings and Reviews” and “Write a Review” and tell me what your favorite part of the podcast is.
Today’s episode:
- [01:02] Where the unjustified hype around unhosted wallets originated.
- [03:04] An analogy that explains why people may choose to use unhosted wallets.
- [05:32] Exploring how private wallets work.
- [06:49] Examples of unnecessary ideas that have been gathering momentum around unhosted/private wallets.
- [07:36] Why obligations to collect information about senders and recipients do not apply to unhosted/private wallets.
- [09:22] Why I don’t think there is cause for concern around ownership of privately held wallets being made publicly available.
- [11:28] The convergence of crypto and fiat regulations.
- [12:45] Why unhosted wallets aren’t the problem that some people are making them out to be.
- [13:26] My recommendation: don’t over-invest in solutions around private/unhosted wallet compliance.
Show links:
- Interested in FinTech compliance? – Consider investing in the FinTech Compliance Self-Starter Package!
- Want more insights about FinTech and Compliance delivered directly to your inbox? Let’s stay in touch! Click here.