Small-cap tech investors already have blockchain on their radar. Blockchain technology is the fintech engine that is necessary for cryptocurrency commerce to take place. As an engine, there are potential applications for this technology that go beyond cryptocurrencies.
For this reason, many tech analysts are more strongly bullish on blockchain than on the cryptocurrencies that they “mine”. But cryptocurrency commerce is currently growing in leaps-and-bounds. With that growth, in an emerging sector with an immature regulatory structure, comes the potential for financial crime.
Even as cryptocurrency use spreads into the mainstream corporate community, problems with illicit activity connected to cryptocurrency use are on the rise. Cointelegraph, a website dedicated to cryptocurrency information and news, has calculated that losses connected to cryptocurrency crime this year are already approximately $225 million.
BIG Blockchain Intelligence Group Inc. (CSE: BIGG, OTCQB: BBKCF, Forum) has identified this concern. One of the missions of this blockchain company is to transform this issue into an opportunity. Its “QLUE” division is a tech platform dedicated to investigating, tracking, and monitoring illicit activity involving cryptocurrencies.
On December 7, 2017; the Company announced a key appointment as it seeks to add depth to this division at the executive level. BIGG reached out to Robert Whitaker to serve as BIG Blockchain’s Director of Forensics and Investigations, managing the commercialization, implementation, and expansion of its QLUE.io™ product.
Whitaker’s name will be instantly recognizable to many readers. He has been in law enforcement for over 23 years. Whitaker recently served as Supervisory Special Agent for the U.S. Department of Homeland Security, working in its Homeland Security Investigations (HSI) division.
While with HSI, Whitaker was assigned to the Illicit Finance and Proceeds of Crime Unit, which included oversight for the Illicit Digital Economy Program. Lance Morginn, CEO for BIG Blockchain put this important addition to the Company’s management team into context.
Having Robert come on board was a significant addition for Blockchain Intelligence Group. His reputation within the US Government as being the resource for knowing what the latest Cryptocurrency investigations tools are and having him a part of the company should validate our position in this marketplace. This should identify to US government agencies that BIG has, or will, have the best tools in this industry. BIG offers tools that trace, track and monitor Cryptocurrency transactions at a forensic level. Our software QLUE, (Qualitative Law Enforcement Unified Edge) is now being designed by an investigator for investigators and will significantly enhance our products offering.
The Company is already targeting several categories of criminal activity presently associated with cryptocurrency use:
- Sale of illicit goods
- Financing criminal activities (including terrorism)
- Money laundering
- Ransomware
For some investors, the timing of both BIGG’s entry into this space and this new appointment could not be better. The most important recent development with respect to Bitcoin was the launching of a new “futures” market.
This creates the potential for an entirely new form of financial crime associated with Bitcoin. Futures trading essentially involves betting on the future direction of Bitcoin prices. The problem with this form of trading was highlighted in testimony to the Commodity Futures Trading Commission (CFTC) in 2010 concerning futures trading in the gold market.
Gold market expert, Jeffrey Christian of the CPM Group famously acknowledged that only 1% of the trading in what the Big Banks call “the gold market” involves actual physical metal. The other 99% of trading is purely paper trading, with much of that paper trading in the gold futures market.
In other words, this paper trading completely drowns out the actual trading of gold. With Bitcoin, the price is supposed to be precisely determined by a computer algorithm that is solely a function of supply and demand – supply and demand of Bitcoin tokens. The new Bitcoin futures market creates enormous potential to pervert this pricing mechanism in the Bitcoin marketplace.
How will BIGG bring greater safety and accountability to the cryptocurrency/blockchain space? In colloquial terms, BIG Blockchain is creating “a paper trail” for blockchain mining and cryptocurrency transactions. It is creating a cyber-trail that can gather evidence, track movement of funds, engage in transaction risk assessment, and ultimately connect the criminals with the crimes.
Cryptocurrency and blockchain technology is here to stay. BIG Blockchain Intelligence Group plans to carve out an important niche for itself ensuring that this new technology remains a tool for commerce – and not a vehicle for financial crime.
FULL DISCLOSURE: BIG Blockchain Intelligence Group Inc is a paid client of Stockhouse Publishing.