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TAP Partners with Notabene to Implement Innovative Solutions Ensuring Adherence to Cryptocurrencies’ Travel Rule

Tap is proud to announce its new partnership with Notabene, in a concerted and strategic response to strengthen its compliance operations, by utilizing the market-leading solutions to ensure ongoing compliance with the Travel Rule for cryptocurrencies. Embracing the ever-evolving regulatory landscape, this partnership underscores TAP's dedication to ensuring consumer trust and guaranteeing pre-transaction regulatory compliance requirements at all times.

Tap has always taken pride in its regulatory-first approach, emphasizing the importance of consumer trust and operational transparency. Tap's decision to partner with Notabene is grounded in a multitude of strategic rationales. Notabene's all-encompassing SafeTransact platform, renowned for its excellence in identifying and mitigating high-risk activity before it occurs, provides compliance teams with the tools to make data-driven choices and enhances operational efficiency by seamlessly integrating the Travel Rule into compliance processes.

Notabene's notable offering includes its SafeGateway solution, which facilitates VASP-to-VASP interaction across protocols. This positions them as strong contenders in the cryptocurrency compliance solutions sector. This underscores why TAP views this partnership as a positive step toward maintaining a competitive edge in the fintech compliance landscape.

Comment from Kriya Patel, CEO of Tap

“I am delighted to be able to announce our strategic partnership with Notabene and I look forward to growing the relationship together whilst navigating through to meeting and maintaining our current and future regulatory requirements in our industry. 

The partnership with Notabene was a natural one. They share the same values as Tap by focusing on  customer-driven product needs, whilst allowing us to maintain a regulated and security-first approach.”

Comment from Pelle Braendgaard, CEO of Notabene

"We are pleased to collaborate with Tap, their commitment to compliance and customer trust aligns seamlessly with our mission. Together, we can advance the industry while ensuring the highest standards of security and transparency."

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In today's fast-paced world and ever-evolving financial landscape, cryptocurrencies have emerged as a revolutionary digital asset class. With their blockchain technology, decentralized nature, and potential for high returns, there’s no denying that cryptocurrencies have captured the attention of both novice and seasoned investors. 

In this article, we will delve into the advantages and disadvantages of cryptocurrency, shedding light on their accessibility, potential returns, and security, as well as the challenges they pose to beginners. If you’re curious about cryptocurrencies or are on the fence about whether they’re a viable addition to your portfolio, we hope the following can shed some light on the matter.

The pros of cryptocurrency

Accessibility and inclusivity

Cryptocurrencies have democratized financial systems, providing individuals around the world with access to previously inaccessible financial services. Powered by blockchain technology, their core aim is inclusivity.

By eliminating intermediaries like financial institutions, digital currencies offer greater financial freedom and empowerment to anyone, anywhere. This includes lower transaction fees and around-the-clock operations as cryptocurrency markets never close.

Additionally, the reduced transaction costs associated with cryptocurrency transactions make them an attractive alternative for cross-border payments, for both individuals and businesses alike. Transactions that previously took days to complete through financial institutions can now be executed in minutes for a much lower cost thanks to cryptocurrency markets and the ability to transfer funds directly.

High-risk, high reward

Cryptocurrencies are renowned for having volatile price movements, however, this isn’t always a negative thing. The volatile nature of cryptocurrencies presents unique investment opportunities. While this volatility comes with risks, it has also been the catalyst for the success stories of early adopters who have seen substantial returns on their investments. 

For beginners with an appropriate degree of risk tolerance willing to navigate the market carefully, cryptocurrencies can offer the potential for significant financial gains.

Security and privacy

Cryptocurrencies make use of cryptographic encryption to ensure secure crypto transactions and protect user privacy. The underlying blockchain technology provides a transparent and immutable ledger that safeguards against fraud and tampering thereby giving users greater control over their financial information. With the use of a private key system, retrieved when creating a crypto wallet, users have sole access to their cryptocurrency at all times.

Due to the nature of blockchain, cryptocurrency transactions are pseudonymous (and on some decentralized networks offering private transactions, anonymous) allowing for greater privacy when it comes to one’s financial matters. This means that when conducting Bitcoin transactions, for instance, the wallet address of the sender and receiver will be stored on the blockchain ledger as opposed to the names associated with the accounts.

The cons of cryptocurrency 

Volatility and risk

While discussed as a pro of trading cryptocurrencies, volatility can also be a con. The biggest one is that the unpredictable price fluctuations of a digital currency can be intimidating for beginners. Market uncertainty, driven by factors like regulatory changes and investor sentiment, can result in significant losses. 

Additionally, the lack of regulations in the cryptocurrency market makes it susceptible to scams and fraudulent activities such as money laundering, which can pose a risk to unsuspecting investors. Always ensure that you are using a reputable platform to trade and manage your digital currency.

Technical complexity

As cryptocurrencies operate on complex technological frameworks, it's often assumed that there is a big learning curve for beginners entering the crypto markets. Understanding concepts such as how a digital wallet works, what a private key is, and blockchain can be overwhelming initially but with our library of informative and easy-to-digest content, users can bypass the overwhelm. Our content is created to empower crypto enthusiasts looking to navigate the world of digital assets and decentralized currency.

Ensuring the security of cryptocurrency holdings and managing wallets require a certain level of caution and online security to prevent loss or theft. To bypass this obstacle Tap has created an easy-to-use app that allows for the management of multiple crypto and fiat currency in one hyper-secure place. 

Limited acceptance and adoption

Perhaps the greatest hindrance to the world of cryptocurrency is its slow-paced adoption. While the acceptance of cryptocurrencies is growing, it remains limited compared to traditional fiat currencies. 

Not all merchants and businesses accept cryptocurrencies as a form of payment, which restricts their usability in daily financial transactions. On top of this, the lack of mainstream recognition and regulatory frameworks presents challenges for the wider adoption of crypto transactions.

Conclusion

As a beginner exploring the world of cryptocurrencies, it's crucial to weigh the advantages and disadvantages before diving into the cryptocurrency market. While digital assets offer accessibility, the potential for high returns, and enhanced security and privacy, there are also the disadvantages of cryptocurrency such as risks related to volatility, technical complexity, and limited acceptance. 

When investing or trading cryptocurrency, it's essential to proceed with caution, conduct thorough research, and consider personal risk tolerance and investment goals. By staying informed and always conducting their own research, beginners can navigate the digital asset landscape effectively and make informed investment decisions.

Remember, cryptocurrencies are a rapidly evolving space, and continuous learning and adaptation are key to staying ahead. Stay informed, monitor market trends, and explore reputable resources to expand your understanding of digital assets and blockchain technology and their potential in the ever-changing financial landscape.

Tap, announces a temporary suspension of XTP locking/fees payment for all its users, reflecting a steadfast commitment to regulatory compliance and global collaboration.

In alignment with our regulatory-first vision, Tap announce the temporarily suspending XTP locking and fee payment in XTP. This strategic move reflects our dedication to regulatory compliance in every aspect of our operations.

At Tap, we prioritize responsibility alongside innovation. This temporary suspension underscores our commitment to regulatory compliance and our ability to effectively serve all our users in the United Kingdom, aligning with the new FCA regulations set in place.

In accordance with the Financial Conduct Authority's (FCA) financial promotion rule, we regret to inform our UK residents that the utilization of XTP for locking or payment is temporarily suspended. The FCA has classified the use of digital assets for obtaining discounts as a financial incentive, thus preventing its extension to any UK resident.

The temporary suspension of services in the UK has necessitated a pause in functionality across our entire platform due to its unified nature. Nevertheless, our team remains unwavering in our commitment to restoring Locking/Paying Fees in XTP for our global community. 

While this transition may present temporary challenges, it also represents an opportunity for growth and collective progress.

We extend our heartfelt appreciation to our users for their unwavering support and patience as we navigate through this transition. Rest assured, Tap remains steadfastly committed to delivering an unparalleled digital asset experience that is compliant, secure, seamless, and transformative for users worldwide.

Hey Tapper! 🎉

We've hit a milestone that we couldn't have dreamed of when we started this wild fintech adventure. We've reached the dizzying heights of 200,000 users, and we're still climbing!  To put this in perspective, that's roughly the population of a small city. If only we could host a city-wide party with virtual confetti and digital fireworks – that would be something, right?

This incredible journey hasn't been a solo expedition. It's been a collaborative and thrilling adventure filled with talented professionals, a supportive community, and a pinch of good old-fashioned fintech humor (yes, that's a thing). We wanted to take a moment to share our heartfelt gratitude and a peek behind the scenes of how we got here.

The Dream Team‍

To begin, let's shine a light on the incredible individuals who work tirelessly behind the scenes – our talented team. Think of us as the Avengers of the fintech world (minus the capes, of course). Our journey started with a small but mighty group of financial enthusiasts. Picture us gathered around a conference table, armed with laptops and spreadsheets, brainstorming ideas that would transform the financial landscape.

Our engineers are wizards with lines of code, turning dreams into reality faster than you can say "crypto." Our designers are artists, making your digital experience a masterpiece. And our customer support team? Well, they're the real superheroes, dealing with every question, concern, and the occasional squirrel jumping in the office (yes, it happened 🐿️) with grace and humor.

To our team, we say this: Thank you for your unwavering dedication, your late-night coding sessions, your creative genius, and your limitless passion for making our vision of managing finance come to life. We couldn't have done it without you – not even close!

Our Community: The Wind Beneath Our Digital Wings‍

As we embarked on this journey, we stumbled upon something incredible – a community of users who believed in our vision as much as we did. They were the wind beneath our digital wings, the driving force that kept us going when the spreadsheets threatened to overwhelm us. From the first user who trusted us with their financial transactions to our 200,000th user who just joined the party, you've made this adventure worthwhile. 🙌

We've seen you share your success stories, engage in lively discussions on our social platforms, and even send us the occasional meme that made us snort coffee through our noses. Your feedback has been priceless, and your support has been our fuel when the fintech rollercoaster took a wild turn🎢 (trust us, it's been quite the ride).
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But here's the deal about fintech: it's not all about numbers and algorithms. It's about people, dreams, and the shared pursuit of financial freedom. So, as we celebrate this milestone, we also want to raise a digital cup to you, our amazing community.

Thank you for your trust, your patience, your loyalty, and your sense of humor. You've made this journey feel like a joyful adventure with friends.  

The Future: Buckle Up, There's More to Come‍

As we celebrate this incredible milestone, we want you to know that we're just getting started. We've got big plans, crazy ideas, and enough determination to make Elon Musk jealous (just kidding, Elon, we love your rockets). We're committed to improving your financial lives, one digital transaction at a time.

So, what's next? More features, a fresh app design, more innovation, and more reasons for you to smile while managing your finances. Because, let's face it, finances can be stressful, but with a dash of humor and a supportive community by your side, it becomes a thrilling adventure.

In closing, thank you, dear users and supporters, for being the heart and soul of our fintech journey. Here's to 200,000 users and beyond – we can't wait to see where the next part of this adventure takes us. Until then, keep those financial dreams alive and your digital wallets handy. We're here to make it all a little bit easier, a lot more fun, and we'll always be just a click away.

With heartfelt thanks and a virtual high-five,

The Tap Team ✨

Interest is a fundamental concept in the world of finance and economics. At its simplest, interest can be understood as the fee charged for borrowing money, or the amount earned on invested money. Understanding interest is essential for anyone seeking to manage their finances effectively, whether they are borrowing money, investing their savings, or simply trying to make informed decisions about their financial future.

In this article, we will explore the basics of interest, including how it is calculated, the different types of interest, and how to navigate interest in various financial situations. We will also provide real-life examples and valuable tips to help you make informed decisions about your money.

Types of Interest

There are two primary types of interest: landed money interest and earned interest. Landed money interest refers to the interest paid on borrowed money, while earned interest refers to the interest earned on invested money.

Landed Money Interest

Landed money interest, also known as borrowing interest, is the interest paid by a borrower to a lender in exchange for the use of money. This type of interest is charged on a wide range of financial products, including mortgages, car loans, personal loans, and credit cards.

The interest rate on a loan is typically expressed as a percentage of the amount borrowed, and is determined by a variety of factors, including the borrower's credit score, the term of the loan, and the lender's own risk assessment. The interest rate on a loan can have a significant impact on the overall cost of borrowing, with higher interest rates resulting in higher monthly payments and a greater total cost over the life of the loan.

For example, let's say you take out a $10,000 car loan with an interest rate of 5% per year, to be repaid over a five-year term. Over the course of the loan, you will pay a total of $1,322.74 in interest, in addition to the $10,000 principal amount. If the interest rate were increased to 8%, the total cost of the loan would rise to $1,845.87, a difference of over $500.

Earned Interest

Earned interest, also known as investment interest, is the interest earned on invested money. This type of interest is paid to investors by banks, governments, and other financial institutions in exchange for the use of their money.

The interest rate on investments can vary widely depending on the type of investment, the term of the investment, and the risk associated with the investment. For example, savings accounts and certificates of deposit (CDs) typically offer lower interest rates but are considered low-risk investments, while stocks and other securities can offer higher potential returns but are also considered higher risk.

For example, let's say you invest $10,000 in a CD with an interest rate of 2% per year for a five-year term. At the end of the term, you will have earned a total of $1,047.13 in interest, in addition to the $10,000 principal amount. If you had instead invested the same $10,000 in the stock market and earned an average annual return of 8%, your investment would have grown to $14,693.28 over the same five-year period.

Calculating Interest

The calculation of interest depends on a variety of factors, including the amount of the loan or investment, the interest rate, and the length of the loan or investment term. In general, the formula for calculating interest is as follows:
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Interest = Principal x Rate x Time

Where:
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• Principal is the amount borrowed or invested
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• Rate is the interest rate expressed as a decimal
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• Time is the length of the loan or investment term, expressed in years
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For example, let's say you invest $5,000 in a savings account with an interest rate of 2% per year, to be held for three years. Using the formula above, we can calculate the interest earned as follows:
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Interest = $5,000 x 0.02 x 3Interest = $300
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In this case, you would earn $300 in interest over the three-year term, in addition to the $5,000 principal amount.

Tips for Navigating Interest

Navigating interest can be challenging, particularly for those new to the world of finance. Here are some valuable tips to help you make informed decisions about interest in various financial situations:

1. Understand the terms of your loan or investment: Before taking out a loan or investing your money, make sure you understand the terms of the agreement, including the interest rate, term length, and any associated fees or penalties.
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2. Shop around for the best interest rates: When taking out a loan or investing your money, be sure to shop around for the best interest rates. Compare offers from multiple lenders or financial institutions to ensure you are getting the best deal.
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3. Consider the impact of compounding interest: When investing your money, consider the impact of compounding interest. Compounding interest is interest that is earned on both the principal amount and any accumulated interest, resulting in exponential growth over time.
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4. Avoid overexposure: Be careful not to overexpose yourself to any one type of investment or loan. Diversify your portfolio and consider spreading your investments across a range of asset classes to minimize risk.
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5. Take advantage of tax benefits: Some types of interest, such as mortgage interest and student loan interest, may be tax-deductible. Be sure to take advantage of any available tax benefits when borrowing or investing.

Real-Life Examples

Let's look at some real-life examples of interest in action:

1. Car loan: You take out a $20,000 car loan with an interest rate of 4% per year, to be repaid over a five-year term. Over the course of the loan, you will pay a total of $2,164.17 in interest, in addition to the $20,000 principal amount.
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2. Savings account: You deposit $10,000 in a savings account with an interest rate of 1% per year, to be held for three years. Over the three-year term, you will earn a total of $308.18 in interest, in addition to the $10,000 principal amount.
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3. Mortgage: You take out a $300,000 mortgage with an interest rate of 3.5% per year, to be repaid over a 30-year term. Over the course of the mortgage, you will pay a total of $184,968.79 in interest, in addition to the $300,000 principal amount.

In Conclusion:

Interest is a fundamental concept in the world of finance and economics, and understanding how it works is essential for anyone seeking to manage their finances effectively.

Whether you are borrowing money, investing your savings, or simply trying to make informed decisions about your financial future, understanding interest can help you make better decisions and maximize your potential returns. By considering the tips and real-life examples presented in this article, you can navigate interest with confidence and make informed decisions about your money.

ICO is an abbreviation for Initial Coin Offering, a term coined supposedly in 2013 yet only gained popularity in 2017. ICOs were created as a method of raising funds for cryptocurrency projects in a crowdfunding manner. When people partake in an ICO, through funding it, they receive "shares" of that project in the form of cryptocurrency tokens.

This method is set up to help new projects find funding to build their project, platforms, or products. It's very similar to investing in a start-up in the hopes of a project becoming bigger and better through your investment contribution.

Mastercoin was the first ICO recorded back in 2013, raising a grand total of 5,120 BTC. Shortly after, Ethereum followed, and in 2014 raised roughly $18 million to build their project. There is clearly a great deal of success to be seen through ICOs, so let's see what all the fuss is about.

ICO vs IPO vs IEO

Let's look at IPOs, or initial public offerings, to learn more about where ICOs originated.

Similar to ICOs, IPOs were created as a way of gaining capital to better the businesses' infrastructures. While they are similar to a crowdfunding aspect,the primary distinction is in how investors are rewarded. IPOs will offer their investors shares, while ICOs offer digital currencies that can be used within their ecosystems or can be sold when the price increases.

Now that we understand how ICOs and IPOs work, let's discuss the differences when it comes to IEOs, or Initial Exchange Offerings. Again, this is another method used to raise funds for upcoming projects, but there are some key aspects that make IEOs different to IPOs and ICOs. While IEOs are also a crowdfunding method in the cryptocurrency industry, they use an exchange. Anyone can generally buy tokens from an ICO page, whereas IEOs use exchanges as the distribution mechanism.

In order to take part in an IEO, you must be a registered user of the exchange that the project is utilizing. While IEOs may be more transparent, they do push us towards a more centralized approach. There are also IDOs, Initial Dex Offering, Dex standing for decentralized exchange (increasing the data privacy aspect), but that's a topic for another day.

How they work

So now we know what ICOs are and how they differ from their counterparts, but now let's delve deeper into how ICOs actually work. As stated, ICOs are a way for cryptocurrency projects to raise money. When a project decides to launch an ICO it will generally underline the sale dates, the participation rules, and the buying process.

Usually, investors will need to choose currencies they are happy to accept in exchange for their tokens, such as Mastercoin accepting Bitcoin. There are some ICOs who will also accept fiat currencies as payment.

The projects' core purpose, its timeline, and how much money is needed to succeed should be released in their whitepaper. If the project does not raise enough money to meet the minimum funds needed, the money should be returned to those who contributed. This would classify the ICO as unsuccessful.

If the funding goal is met, the project will continue to pursue its original goals and contributors will be able to claim their tokens further along. Tokens will either be listed on notable exchanges later on or will be distributed using smart contract technology,This is something you should do more study on before contributing to an ICO.

Advantages and disadvantages

While ICOs have proven to be a massive benefit to project developers, there are some underlying issues and risks that may come into play. In order to give you the best chance of understanding ICOs we will need to cover all the pros and cons that come with ICOs. So let's see what you have to look out for:

Pros

        High potential profits

        Accessible to anyone (unlike IEOs)

        Money returned if unsuccessful (smart contacts)

        Transparency on fund usage (Blockchain)

        High liquidity

Cons

        No intrinsic value

        No legal guarantees

        Potential fraud

Frequently asked questions

Now that we have covered the basics, there are some additional questions the internet has and we thought we would take the time to answer them for you. These are the most frequently asked questions about ICOs, and while we have answered some here is a more TL;DR breakdown:

What does ICO mean?

ICO stands for Initial Coin Offering, a phrase coined by the cryptocurrency industry.

What is the purpose of an ICO?

ICO is a method used to raise funds for up and coming projects, think of it as an early investment phase.

How do I get an ICO?

That depends on the ICO you want to partake in, you will generally need to sign up to the ICO, deposit funds, and wait for the tokens to be distributed either through an exchange or smart contract. This differs depending on the projects' ICO parameters.

Is Bitcoin an ICO?

No, Bitcoin required no funding, tokens were mined and sold without the need for crowdfunding.

How many ICOs are there?

There is no definitive number out there but consensus shows that there have been roughly over 7,000 businesses that have attempted ICOs.

Are ICOs safe?

This is a tricky question and depends greatly on the individual project that is hosting an ICO, whether they are using smart contact technology, and how legitimate the team behind it is. ICOs can be safe, but they also carry risks, it is always best to do your own research before investing.

As there is no universal authority on ICOs there is certainly a lack of regulation in the space so be sure to do thorough research before parting ways with your money.

Closing Thoughts

That is all the essential information you need to grasp in order to better understand what an ICO is. From the textbook definition to its competitors, how it works, and everything in between. ICOs are popular for a reason, they offer a range of benefits to both projects and investors, but you should keep in mind that there is no benefit without risk.

While we can explain what an ICO is, we can not tell you whether to invest in an ICO. It's important to vet the project for yourself and see if it aligns with your interests, and more importantly if it has all the key components for a legitimate project and token.

While the world is increasingly accepting of ICOs from both businesses and retail investors standpoints, there are several alternatives available. We briefly discussed IEOs and IDOs, but more crowdfunding methods have flourished from the origins of ICOs, so be sure to explore those out too. At the end of the day, we hope we helped you better understand what an ICO is.