Over the next few days, I will post parts of the interview. Today part one.
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Sketches of LEOcoin
An Interview with LEOcoin co-creator Dan Andersson
LF: LEOcoin Foundation
DA: Dan Andersson
LF: Dan, thank you for this exclusive interview that we shall use to inform those who are interested in LEOcoin.
DA: its my pleasure
LF: When you created LEOcoin in June 2014 what did you have in mind?
DA: First and foremost, we wanted LEOcoin to be THE digital currency for entrepreneurs. To realise that objective it had to combine global access, availability, security, moderate costs and fast transfer times. A second reason is that we at Learning Enterprises Organisation Ltd. believe that we should take advantage of any emerging technology which can make a positive difference to our members and associates. Establishing the LEOcoin project addresses all three of the pillars that LEO stands for; Learn, Earn, Own.
By using LEOcoin, entrepreneurs learn first-hand what digital currencies are and how they can be used to the advantage of small and medium enterprises all over the world. The earning and owning part has to do with LEOcoins function as a currency. By encouraging our members to be active in using and trading LEOcoin we want to emphasise both functions of LEOcoin: a) the use of LEOcoin as mean of payment and b) its potential to gain value over time.
When we as a company with our member base of currently almost 200,000 entrepreneurs and registered merchants all work together, we can - by spending, trading, saving and staking LEOcoins make things happen.
LF: LEOxChange launched in April 2015. Can you tell us something about the measures involved with regard to security and compliance with financial regulation in London and Hong Kong?
DA: When designing LEOxChange we sought advice from people with forex and digital currency trading experience and used their combined knowledge to implement an environment that provides best of breed security and technical scalability. In addition we approached the UK financial authorities to understand their current and future requirements regarding regulation of digital currencies, which enabled us to build the LEOxChange in a way that it complies now and is capable of complying with future standards. We are certain that this will give the public confidence in the LEOcoin digital currency and that the LEOxChange is more trustworthy than non-regulated ones.
LF: The recent reports on the implications of digital currencies on national security and the many scandals and misuse of digital currencies for fraud and criminal activity have made many potential users, politicians and early adopters wary. What does the LEOxChange do to address these concerns?
DA: We have chosen to adopt a best-of-breed KYC procedure. The more you want to do on the LEOxChange, the higher the KYC requirement. We have 4 levels at present. The highest level, Tier4, meets same level of KYC requirement that you experience when opening a bank account, which includes complying with anti-money-laundering (AML) regulation.
In order to be able to withdraw currency from the LEOxChange you need to submit proof of your identity, address and bank details, so we fully understand who it is we are dealing with. The LEOxChange not only complies with current regulation, but is also an active contributor to the discussions on how we can ensure there continues to be a healthy digital currency ecosystem that is fit for the future.
LF: That could easily be seen as being in conflict with LEOcoins anonymity?
DA: Oh, dont get me wrong. All LEOcoin transactions are transparent, in the sense that the user addresses remain visible in the blockchain, but no personal data. This means that payments with LEOcoin are as private as they are with other forms of digital payment.
Regarding the LEOxChange we have chosen to comply with UK and EU financial regulations, which calls for transparency on withdrawals of fiat currency. Also banks in the EU do report transactions once they reach a certain amount and we, the LEO community, think that transparency is a good thing. For the same reason, we had our first launch event for LEOxChange in London and work with all relevant regulators. The idea behind this is LEO believes that transparency, compliance with regulation and conformance with best practice is a good thing. When we open business in a new country the first thing we do is look for the local Direct Selling Association. The reason is that the DSA sets the benchmark for companies like LEO. This third party examination of our processes and procedures gives us, and potential associates, confidence that we are a properly run business.
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This interview will not be commented on, but comes as it is for your information only.