In the dynamic Web3 market, financial scandals often emerge due to a lack of compliance. Contrasting this trend, Telcoin sets a higher standard by emphasizing regulatory strategies in its operations. Several key aspects underline Telcoin’s commitment to compliance, as outlined below.
Fact #1 – Telcoin’s Role in Crypto Legislation in Nebraska
In 2021, Telcoin collaborated with then-State Legislator Mike Flood to draft a new piece of legislation in Nebraska. This initiative aimed to elevate Nebraska as a frontrunner in the cryptocurrency and fintech sectors. Legislative Bill 649, which was signed into law, introduced a unique state banking charter for digital asset depositories, focusing on consumer protection and integration with decentralized finance.
Telcoin’s involvement in drafting this bill marked its compliant entry into the US market. Paul Neuner, Telcoin’s CEO, emphasized that the charter supports self-custody of digital assets and prevents the lending of customer funds, offering a more secure and transparent consumer experience. Flood, now in US Congress serving on the Financial Services Committee and its Subcommittee on Digital Assets, is at the center of shaping the regulatory future for crypto and the future of banking. Congressman Flood celebrated Telcoin’s decision to establish operations in Norfolk, Nebraska, as a strategic move to transform Nebraska into a hub for digital asset companies.
Fact #2 – Telcoin’s Initiative to Issue a Regulated Stablecoin
Telcoin is on track to become the first Web3 firm to issue fully regulated stablecoins. This effort further demonstrates Telcoin’s dedication to compliance in the digital asset realm. We know there is a digital asset bank coming and that it will issue regulated stablecoins, which is likely in line with Financial Services Committee’s vision for a US answer to CBDC: bank-issued tokenized cash. The team has built connections with key payment service providers and has engaged with banking and financial service executives who support Telcoin’s mission.
The company has prioritized developing socially impactful products and maintaining transparency with regulators and advisors. Extensive EU on/off ramp releases in 2023, improvements in scalability, security, and reliability, and expanding global remittance corridors are part of Telcoin’s product evolution. Additionally, the team is increasing engineering capabilities and collaborating with external auditors to ensure compliance.
Fact #3 – Contextualizing Telcoin’s Christmas Day Incident
On Christmas Day, Telcoin experienced technical issues, which were promptly addressed. Despite sensationalist media narratives about a hacking or collapse, the incident did not compromise user data and was limited to a proxy implementation of the Telcoin wallet on Polygon. This event was leveraged to enhance Telcoin’s security measures, including updating wallet configurations and implementing stricter controls. It took the company just two weeks to restore all user wallets and app services, among the fastest turnarounds in the wake of such an incident in industry history.
Operations have since resumed normally, with Telcoin continuing to provide a secure platform for its users. The company remains vigilant, employing enhanced measures to avert future incidents. Despite this challenge, Telcoin has maintained its resilience and commitment to delivering innovative solutions while ensuring user security.
Conclusion – Telcoin’s Strong Focus on Compliance
Telcoin’s approach speaks volumes about its commitment to compliance. From participating in significant crypto legislation to aiming to issue a regulated stablecoin, Telcoin has consistently prioritized regulatory compliance. These actions demonstrate their dedication to safeguarding consumers and driving innovative solutions in the decentralized space. With operations adhering to central bank regulations in various countries, Telcoin ensures the security of user assets, positioning it as a promising entity in the evolving cryptocurrency and fintech landscapes.
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