Bitcoin dropped and people panicked. Now, several crypto exchanges, specifically those in South Korea, are in danger of being shut down and people are panicking again. Either way you cut it, people are concerned they’re about to lose all the money they’ve invested in cryptocurrencies – and that’s a lot of money.
But, there might just be a solution, a solution that brings the decentralized system into a more centralized light. In Japan, Mitsubishi UFJ Trust and Banking (NYSE:MTU) is going to begin offering a service that will protect cryptocurrency holders in the event of an exchange closure or hack.
The service is simple. If you opt in, copies of all your crypto records, meaning anything you do on a crypto exchange, will be kept and protected. If anything happens to the exchange you trade on, either a closure or a hack resulting in the loss of your digital currencies, Mitsubishi UFJ will be able to compensate your losses based on the records it has kept for you. Nice, right? Of course, a service fee will be charged if you decide to opt in, but that’s a small price to pay in order to keep all of your digital crypto assets safe.
The service is set to begin with Bitcoin trading first and could be ready to go as early as April of next year. “Customers will feel peace of mind knowing that a trust bank is managing their assets.”
That’s just a little bit ironic, considering the very premise of Bitcoin and cryptocurrencies was to be a decentralized way of controlling money. This service would regulate, in a way, crypto transactions, making it a whole lot more centralized than was ever intended. Is this the direction we’re heading in? Will crypto only truly survive if it segues into centralized regulation? Can it even be crypto anymore if that happens?