James Toledano, Chief Operating Officer at Savl, a self-custodial crypto and Web3 wallet that combines encryption, unique functionality, and intuitive design, has recently commented on key crypto / digital assets industry insights in a discussion with Crowdfund Insider.
James Toledano from Savl has shared informative insights focused mainly on the fast-growing crypto and blockchain space and how transformative industry trends are expected to impact the broader blockchain / distributed ledger technology (DLT) ecosystem. He also touched on various trade-offs between maintaining adequate levels of privacy and ensuring robust security.
It’s worth noting that Savl is described as a multifunctional Web3 wallet for iOS & Android, enabling users “to buy, sell, exchange, and store over 250 cryptocurrencies from within a single, secure, and easy-to-use application.”
It’s also a Web3 gateway reportedly giving users “access to decentralized finance, dApps, blockchains, and fungible and non-fungible tokens.”
Our conversation with James Toledano is shared below.
Crowdfund Insider: Money laundering and digital security have changed dramatically over the past 5 years. What do you see the next 5 years looking like from a crypto security perspective?
James Toledano: With the advent of AI, the rate of change is likely to be far quicker and less predictable. The next five years in crypto security are likely to see both significant advancements and challenges from a technology perspective. We can expect increased regulatory scrutiny and compliance requirements across the globe, which may lead to more sophisticated KYC and AML procedures to ensure circumvention is much harder.
Remember, AI can be used both ways. I think quantum computing advancements could pose threats to current cryptographic methods and code-breaking, prompting the development of quantum-resistant algorithms and new standards. AI and machine learning will play a larger role in both attack and defense strategies, with more advanced predictive security measures becoming commonplace. Additionally, we might see a greater emphasis on cross-chain security as interoperability between different blockchains becomes more prevalent, as does convergence between DeFi and TradFi.
Crowdfund Insider: What are the biggest challenges crypto companies must overcome to ensure the next wave of crypto users are onboarded safely?
James Toledano: For most people who are technology-shy, transacting in crypto can be daunting. I’d say one of the biggest hurdles is simplifying the user experience without compromising security. This includes creating a highly intuitive user interface and flow for wallet management and transactions while maintaining robust security measures.
Education is another critical challenge; companies must find effective ways to inform new users about best practices and potential risks as they occur. Too many users still fall for rudimentary scam practices and it’s our job to keep users informed. Sometimes that advice is as simple as “if it’s too good to be true, it usually is.” But people are not always rational when money is involved.
Another challenge businesses like ours face is preserving the decentralized aspect of everything we do while ensuring we remain fully compliant with evolving regulations. In other words, we want to create a centralized feel within a decentralized ecosystem.
Lastly, I think companies need to develop scalable security solutions that can handle a massive influx of new users without compromising system integrity.
Crowdfund Insider: If an individual unknowingly comes into contact with tainted crypto, what are the tangible dangers to them and to the industry?
James Toledano: They could face several risks. Legally, they might be implicated in money laundering investigations, potentially leading to asset freezes or legal consequences — possession is nine-tenths of the law, as they say. Financially, their tainted assets could be seized or become worthless if blacklisted by exchanges. Reputationally, association with illicit funds could damage their standing in the crypto community and beyond.
For the industry, such incidents erode trust and legitimacy, potentially leading to stricter regulations that could stifle innovation and adoption. It also reinforces negative perceptions about cryptocurrencies being tools for illegal activities.
Crowdfund Insider: What can the average crypto user do today to ensure they trade and store their tokens safely?
James Toledano: There are several steps a user can take to trade and store tokens safely. Robust self-custodial software wallets are one thing, but using hardware wallets for long-term storage of significant amounts is a best practice.
For day-to-day transactions, self-custodial wallets with strong security features are the way to go. Enabling as many of the built-in security features on offer is also advisable. Two-factor authentication on all accounts, using unique and complex passwords, regularly updating software, and storing seed phrases correctly are all essential practices.
Users should also take some time to research what other safety features are out there. Businesses are constantly improving and looking for new ways to protect their customers – it’s in their best interest after all. Look at Savl, for example; our Know Your Transaction (KYT) allows users to run a risk assessment on any blockchain address and check for tainted crypto. Security doesn’t have to be complicated, and I think people would be surprised how many simple yet powerful solutions are out there.
Finally, users should also be cautious of phishing attempts, verify transaction details thoroughly, and only use well-established, regulated exchanges when on or off-ramping. Diversifying holdings across different storage methods can also help to mitigate risk as can doing your due diligence before diving in.
Crowdfund Insider: How does the industry reconcile the trade-off between privacy and security going forward?
James Toledano: One approach is implementing privacy-enhancing technologies like zero-knowledge proofs, which can provide transaction privacy while still allowing for necessary compliance checks. Another is developing more sophisticated, on-chain analysis tools that can help identify suspicious activities without compromising individual privacy – like our KYT feature for example.
Tiered KYC (Know Your Customer) systems, where the level of personal information required correlates with transaction volumes or types, could balance privacy concerns with security needs. Global industry collaboration on standards for privacy-preserving compliance could also help here.
Ultimately, the industry may need to advocate for regulatory frameworks that recognize the unique characteristics of blockchain technology and allow for innovative solutions that protect both privacy and security. We also have to move a lot faster to keep up with evolving and increasingly sophisticated threats posed by AI-powered technologies – this requires a very proactive approach in real-time.
