The term ‘virtual asset’ refers to any digital representation of value that can be digitally traded, transferred or used for payment. It does not include the digital representation of fiat currencies. Virtual assets have many potential benefits. They could make payments easier, and cheaper; and provide alternative methods for those without access to regular financial products. But without regulation, they risk becoming a virtual safe haven for the financial transactions of criminals and terrorists.
Blockchain originated just over 10 years ago. Since then, virtual assets have become widely available and have become widely available and have started to be used as payment products. However, without, without established regulation and oversight , the sector is often still referred to as the “wild west” of the finance industry. Blockchain, bitcoin, crypto assets, virtual currencies… a whole new vocabulary describing innovative technology to swiftly transfer value around the world. The fast-evolving blockchain ad distributed the financial landscape. But, their speed, global reach and above all – anonymity- also attract those who want to escape authorities’ scrutiny.
In 2017, the ‘Wannacry’ ransomware attack held thousands of computer systems hostage until the victims paid hackers a ransom in bitcoin. The cost of the attack went for beyond the ransom payments, it resulted in an estimated USD 8 billion in damages to hospitals, banks and business across the world. Other ransomware attacks have happened since and appear to be on the rise.
