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Philip Salter Says layer-two Bitcoin Solutions is Needed for Bitcoin’s Growth

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Philip Salter, Genesis head of mining operations, is of the view that Bitcoin would need second-layer solutions to be seen as a good store of value.

He said even if the coin can still be regarded as a good store of value now, it still needs such a solution to accommodate mainstream adoption.

“I think Bitcoin is a good store of value regardless of transaction fees,” he said.

Slater, however, noted that the high transaction fee on Bitcoin is posing a challenge since it affects the value that can be transferred. There have been several projections and predictions on Bitcoin even before the Bitcoin fork earlier last year. However, the top cryptocurrency is still waxing strong as is gradually proving naysayers wrong.

Bitcoin transaction price too unreasonable

Up to this point, Bitcoin (BTC) has stood the test of time, as the coin is the crypto with the highest market cap asset for the past decade.

These days, many people even prefer keeping Bitcoin as a store of value than digital cash. But Salter is not ruling out complications that may arise due to change in perceptions.

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“Some years ago it was possible to store and transmit $1 efficiently since tx fees were effectively zero,” he stated.

Salter added that those days have gone since some transaction fees can go as high as $15, and it’s not sensible to charge $1 anymore.

If the trend continues and Bitcoin continues to rise in price, transferring value in common amounts will be very difficult, but only when transferring very large amounts.

Second layer solutions will be feasible

Salter said the solution will be vital not only for transactions on BTC but also for the use of the coin as a store of value in the future.

There have been several layer 2 solution projects undertaken by industry players, many of which are still in a developmental phase. Some of the ready projects, such as Lightning Network, are intended primarily to make small BTC transactions more feasible.

Salter says he is one of those that use the Lighting Network solutions to facilitate transactions in small BTC denominations.

Philip Salter Says layer-two Bitcoin Solutions is Needed for Bitcoin’s Growth

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French and Italian Regulators Go After Unlicensed Crypto Services 

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Cryptocurrency scams have continued to grow, and their influence is reaching even the farthest parts of the world. However, regulators worldwide are also improving their ability to track and apprehend these criminal enterprises’ operators.

AMF Cleans Its Crypto Investment Space

Earlier this week, Autorité des marchés financiers (AMF), France’s top financial regulator, sent out a list of investment companies operating within its borders without the proper authorization. While the companies provide investments in different asset classes, some are also linked with cryptocurrencies.

Most notable among the crypto-linked scam sites is BitcoinFrance. Per the report, the company promises users free access to its proprietary Bitcoin trading software once they deposit $250. The company allegedly has an app that trades crypto markets and purportedly generates $1,000 in earnings daily. It also adds that its investments are risk-free, and customers’ funds are guaranteed. As the AMF said, the list could change at any time as most of these fraudulent companies tend to switch their operations and identities.

So far, the AMF has been doing its bit to ensure effective oversight of its digital asset space. The agency has worked to close loopholes that could provide an avenue for criminals to thrive, and like many other regulators, it has introduced licensing requirements for most industry players.

In July, the agency partnered with another local regulator, les Autorité de Contrôle Prudentiel et de Résolution (ACPR), to remind crypto ATM operators of their licensing requirements under the country’s Monetary and Financial Code.

In a press release, the AMF explained that it had noticed a surge in crypto ATM installations and deployments across the country. However, any company that seeks to operate these devices will have to register before proceeding.

“Registration entails, in particular, the setting up of an organization, procedures and internal control system capable of ensuring compliance with the fight against money laundering and terrorist financing (AML-FT) and enabling the freezing of assets,” the release added.

CONSOB’s Blacklisting Spree

Elsewhere, in Italy, the Commissione Nazionale per le Società e la Borsa (CONSOB), the country’s top securities regulator, has been on a rampant website blocking campaign recently.

The latest action took place on September 18, and it confirmed that the agency had blocked 284 websites since July 2019. These sites claim to specialize in offering forex and cryptocurrency trades, but none had gotten authorizations from the agency.

CONSOB added that most of these companies had shown significant signs of being fraudulent. The moves are coming as the European Union gears up to adopt a new set of cryptocurrency rules. According to a report from Reuters last week, the regional authority has published two documents outlining its mission to adopt digital finance as a means of enhancing its cross-border payments service.

“By 2024, the EU should put in place a comprehensive framework enabling the uptake of distributed ledger technology (DLT) and crypto-assets in the financial sector. It should also address the risks associated with these technologies,” one of the documents read.

As Reuters added, the E.U. is considering enforcing Anti-Money Laundering and identity verification to cryptocurrency transactions. Once done, it will be ready to adopt these assets into its financial regime.

French and Italian Regulators Go After Unlicensed Crypto Services 

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