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Transforming the Telecommunications Industry With Cryptocurrency

The existing telecommunications industry is stagnant and commoditized, particularly in Asia – and telcos globally are seeking ways to innovate and bring greater value to customers by adopting mobile financial services, which telecom cryptocurrency can help drive further adoption of mobile money.

While cryptocurrencies today are developing at an exponential rate, concurrently governments have put out their stance on the cryptocurrency industry. In September, China and South Korea banned initial coin offerings, while Russia has called for regulation of cryptocurrency.

Other governments around the world, however, are starting to accept cryptocurrencies and some banks are preparing for the adoption of digital currencies. Bank Negara Malaysia has recently announced that they are developing a regulatory structure for digital currencies.

High Level of Transparency

Hong Kong's regulator made a statement that digital tokens involved in an ICO would fall «under the definition of securities, dealing in or advising on the digital tokens, or managing or marketing a fund investing in such digital tokens» and hence would be subject to regulatory authority. Singapore's Monetary Authority of Singapore, on the other hand, has announced they do not plan to regulate cryptocurrencies.

For cryptocurrencies operating in this environment, transparency and KYC is key. By using a cryptocurrency that taps into telecommunications industry, the telecom cryptocurrency will have access to a robust KYC framework in place. Telecom cryptocurrency which is built on an existing blockchain technology adds a layer of security to the digital currency.

In the past year, regulators in Africa, Japan and India exploring the safety of using telecom cryptocurrency. To address transparency concerns, cryptocurrency needs to be built to address regulatory considerations and developments in the industry. There should also be a mutual understanding where cryptocurrency firms provide a high level of transparency to central banks and other regulators.

Claude Eguienta is the co founder and CEO of Telcoin, a cryptocurrency startup. Based in Singapore, Telcoin has a team operating out of Tokyo, Japan. Its cryptocurrency, Telcoin, is based on the Ethereum blockchain. Telcoin is planning an initial coin offering in December 2017.