CHOKE POINT 2.0: The P2P Extinction Plan. 

Introduction. 

2024 has been a full-blown war on crypto P2P, short for PEER-TO-PEER or person-to-person. No one was totally surprised but maybe a bit dazzled by how quickly regulatory bodies came for the p2p platform in the crypto space. Undoubtedly, they see P2P as equivalent to banks and have a direct impact on international money transfers across borders. 

By design, the P2P2 algorithm is meant to overlook continental differences and spreads that may occur between currencies across the world giving the power of deal to the merchants or so-called P2P traders. Some governments around the world often consider this as currency price speculation. In this article, we will see exactly what the P2P traders around the world are going through, especially in regions where there seems to be coordinated scrutiny on P2P or as I would like to call it “CHOKE POINT 2.0”. 

comparing P2P to commercial banks

P2P stands for peer-to-peer, which is a type of decentralized network system where each participant, or “peer,” has equal status and can act as both a client and a server. The meaning of P2P goes deeper when we look within the confines of cryptocurrency trading. 

P2P in the context of crypto likely refers to “anonymous peer-to-peer” trading or transactions. Both parties exchange value without even having to meet physically or they can simply meet in a coffee shop and have their transaction while chit-chatting.

how ever in a commercial bank setting, you the customer must have an account with the bank which must have been registered physically and some signatures signed for official and legal reasons.

Sending money internationally through a bank typically involves the following steps:

1. Log into your online banking app, site or visit a branch.
2. Navigate to the payments section if you’re online, or ask a banker at the counter to help you.
3. Enter the details of your payment, including the value and currency rate.
4. Enter the recipient’s banking details — usually full banking details will be required.
5. you would be met with the fees and delivery time available even though you have no option neither can you make adjustments that suite your expectations.

It’s important to have the following information ready for the transfer:

• The exact amount of money you wish to send.
• Your recipient’s full legal name and current address.
• An address and name for the recipient’s bank or transfer service provider.
• The recipient’s bank account number, and account type.
• A SWIFT or BIC bank code for the recipient.

Please note that the exact process may vary slightly depending on your bank and the country to which you are sending money. 

On the other hand, for p2p you just need the account name and number or even just scan a code. one makes life very easy.

does P2P Trading facilitate illicit transactions and money laundry?

P2P trading is a type of cryptocurrency exchange method that allows traders to trade directly with one another without the need for a centralized third party.

yes that sounds like something you and reading this might be interested in. privacy is a profitable business in a world where information can be traded, manipulated and used as a weapon. everyone’s finance sits on the top list of prioritized privacies.

however the reasons why we go for these privacies on open networks is outweighed by the reasons the FEDs want to have our privacies monitored. It makes people wonder whether they also have some other agenda for going after people’s data.

there is a misunderstanding if you think P2P on exchanges are totally private. matter of fact you undergo 100% KYC to have a functioning account especially if you want to process large transactions. so to break it down to you guys… it is almost impossible to use a p2p exchange for illicit transactions or money laundry without living your info to the management. so in cases of investigations such persons can be tracked easily.

this is a safety measure that is just accurate to that of so called trusted commercial banks.

records of internet fraud involving p2p and commercial banks:

When comparing fraud records between the crypto peer-to-peer (P2P) sector and commercial banks, here’s a summary based on recent reports:

Crypto P2P Fraud:

• The P2P payments/money transfer industry saw a 90% increase in fraud losses in 2022 compared to 2021, with projected losses of $1.7 billion.
• The Federal Trade Commission (FTC) reported over $1 billion in losses for crypto-related fraud in 2021, marking a 6,000% increase since 2018.

Commercial Bank Fraud:

• A report based on data from four different banks partnered with P2P payment app Zelle found that losses to P2P payment fraud hit $255 million in 2022.
• Banks reimbursed customers in just 3,500 of these payment fraud cases, and only 47% of the funds were returned even when they were withdrawn without customer authorization.

It’s important to note that while both sectors are affected by fraud, the types of fraud and the regulatory environments are quite different. Crypto P2P transactions are often unregulated, which can make it easier for scammers to operate. In contrast, banks are subject to strict regulations, which can help in fraud prevention but also means that fraudsters must be more sophisticated to succeed.

The data indicates that the crypto P2P sector has experienced a significant increase in fraud losses, especially in comparison to commercial banks. However, the actual number of fraud cases and the total amount lost can vary year by year and depend on numerous factors, including market conditions and the adoption of anti-fraud. technologies.

But you did not prepare to his this part; crypto p2p is unregulated by intention as most regulators around the world have failed to work with crypto exchanges to create laws and policies that would help the sector to grow. until this feat is achieved it may be a little more easier to engage in fraud through p2p.

however you would be happy if you discovered a crypto p2p platform that by default was designed to mitigate the risks attributed to the use of P2P platforms.

When it comes to a reputable P2P platform with safety measures that can be used from anywhere around the world, then you need to look no further.

NOONES app is the one for you.

IF P2P IS GOOD THEN WHY IS IT DISLIKED BY SOME GOVERNMENTS?

Governments around the world have been in contempt and disdain of P2P within the crypto market. Some countries have embraced it for its perks while others have loathed it and even declared war on users of P2P platforms in their countries, in a bid to drive P2P toward extinction. Will their plans work or fail? Without further ado let’s delve into some key issues governments face concerning P2P trading:

1. High risk and volatility: cryptocurrencies being volatile makes the platform prone to price instability. Governments believe that some uninformed users have been victims of these risk exposures from volatility. 

2. Money laundering and illicit ventures. By design, the P2P platform is in a way decentralized which makes transactions appear anonymous and outside of central monitoring for red flags. This is one of the fears of the government as it can aid criminal activities such as money laundering and scams. 

3. Currency price speculation: this is a new charge on the list against P2P. In recent events, we have had cases where P2P users were accused of causing the devaluation of a national currency. An act allegedly said to have been done by speculations of price on P2P platforms that have not been declared officially by the central bank of the nation. 

4. Tax evasion: among the accusations forwarded against P2P trading is the avoidance of paying tax by P2P platforms to the government of the users of the P2P platform. We even saw an event where a country sued one of the P2P platforms over tax evasion and fined them billions of dollars. 

We can keep counting this contempt and misconceptions by some governments but the main goal of this article is that P2P is developing and will definitely get better with time. Any technology that solves global problems should not be trampled upon till it crumbles but rather enhanced for the better. 

What are the most basic regulatory compliance P2P platforms must abide by?

1. Getting the right certification in countries where it is required by law before they can operate so they can continue their transactions within the confines of the law. 
2. Market integrity: Ensuring a fair and transparent market is crucial. P2P platforms need rules to prevent market manipulation and abuse.
3. Governments seek to mitigate risks while allowing the crypto industry to flourish.
4. AML and KYC Compliance: Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations are essential for preventing illicit financial transactions. 

Conclusion: 

P2P has come to stay and it will only get better. However, it is important to abide by regulations as we draw closer to regulatory compliance in the entire cryptocurrency space. The government also needs to see that P2P is solving complex problems that banks have used to inconvenience their customers, especially with bank charges incurred during international or cross-border transactions. central banks around the world should help to regulate crypto exchanges and not choke them into extinction. These P2P are bringing solutions to the world of finance . We should embrace this technology and let it grow if it solves real-world problems. That’s a wrap guys see you on the next one. 
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