ISO Certifications are the solution to regulating Crypto, Crypto trading, and cryptocurrency platforms in Kenya and Africa in general. In this article, we will try and see the advantages ISO certifications can bring in ensuring that the world of digital coins is regulated and standardized.
Let’s first start by defining the terms; By definition, a cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. While a Cryptocurrency platform is a market where you can buy and sell cryptocurrencies such as Bitcoin, Ether, or Dogecoin. Examples of crypto platforms include Crypto.com, Binance, and Remitano. Crypto trading can be defined as the trading of this Cryptocurrency trading is the act of speculating on cryptocurrency price movements via a CFD trading account, or buying and selling the underlying coins via an exchange.
ISO certifications are groupings of quality management systems (QMS) , they are standards that help companies meet the needs of both customers and stakeholders. It acts as the most basic form of what the ISO set out to accomplish. The most common standards are the ISO 9000.
To better understand the need for having ISO standards on virtual /digital coins it’s better to first start by understanding the challenges faced by using virtual or digital currencies. Digital currencies are convenient, flexible to use, and have been opted for transactions that are cross border as they have little or low transaction costs. But there are numerous challenges faced, first cyber hacking and cyber insecurities. Secondly, virtual transactions are anonymous hence it’s hard to trace the originator and follow transactions through. Thirdly, encryption and digital passwords are a challenge in case someone forgets, and lastly, there is sometimes duplication of coins as they are digital numbers.
With the above challenges, there are ISO certifications that are Quality Management Systems specifically for information systems that will ensure that some of the challenges are mitigated. Some of these ISO standards are ISO /IES 277701, a quality standard that is for digital and information security of any kind. The second type of ISO standard that can be applicable for digital and virtual coins is ISO 22301:2019, which is the quality standard for business management and continuity that helps businesses prepare, prevent, and respond to any unexpected destructive incidents.
To acquire any quality management systems, organizations are taken through a vigorous process that involves providing documentation that shows the financial position of the company, the documents disclose the directors and officials of the company and lastly, the documents also provide the number of employees in the company. Why should crypto Currency companies be an expectation of the above standards?
In most African countries trading in cryptocurrencies has not yet been accepted as legal tender and many Central banks have warned banks and financial companies against trading and even transacting cryptocurrencies as a way of protecting its citizens from fraudsters and fraudulent companies, but as central banks and governments try to understanding and regulate cryptocurrency, ensuring that companies engaging in cryptocurrency are ISO certified would be a good way to protect their citizens and also bring order to an industry that is dynamic and ever-changing.