LSE’s Technology Powers Asian Cryptocurrency Platform
Hong Kong-based AAX will use the London Stock Exchange’s technology for cryptocurrency trading. This will enable the British exchange operator to enter an emerging and highly unpredictable industry. LSE announced this news on this Tuesday i.e. January 22, 2019. If its true then that means Asian Cryptocurrency Platform is going to have some progress now with some western influence.
Atom Groups back the AAX exchange. Atom Group is a fintech firm. Their main focus is on blockchain technology and emerging digital assets. LSE stated that AAX exchange will use LSE’s Millennium Exchange matching system.
At this very moment, Asian countries are facing scrutiny about cryptocurrency related stuff. Authorities are warning policymakers about the risks of investing in the “uncertain” cryptocurrencies. So let’s have a look at what are cryptocurrencies.
What is cryptocurrency
If you not have been living under a rock for last 10 years you must have at least heard the name of Bitcoin. Well, Bitcoin is the most popular cryptocurrency. According to Wikipedia cryptocurrency is a digital asset for secure financial transactions. The advantage of using a cryptocurrency is that no sensitive details are leaked during the transaction. The source and recipient remain anonymous. Cryptocurrencies are decentralized. Due to decentralization of cryptocurrencies, there is no central authority. There is a requirement of a system for overviewing the units and their ownership. Some popular cryptocurrencies are:- Bitcoin, Litecoin, Nxt and there are many more.
What is the problem with cryptocurrency in Asian Countries
There is a huge security issue regarding the sites hosting bargain of cryptocurrencies. These sites generally operate with very low-security measures than traditional financial markets. So these are highly vulnerable to market manipulation. Hackers are also a threat in the way of cryptocurrency exchanges and trades. In India, Bitcoin is not legal right now and is still in the grey region. RBI stated that being electronic currency the guarantee of security in Bitcoin is very difficult to provide.