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The primary risk is individuals are responsible for protecting the cryptographic private keys that sign transactions proving ownership of assets.
The primary risk
lies in individuals being responsible for protecting the cryptographic private keys that sign transactions proving ownership of assets.
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Furthermore, since KYC/AML verification can be outsourced via whitelists, a gateway that holds costumers funds in terms of IOU backing fiat does not necessarily have direct access to your identity as was the case with Mt.Gox where thousands of identities have been stolen.
.. customers ...
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In the Bitcoin ecosystem, we demand at least 100% reserve.
Shouldn't be BitShares?
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In contrast to central exchanges, the IOUs are sent directly to the wallet of the customer directly and are under his full control.
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In this paper, we have laid out the foundations of the BitShares network to shift the paradigm of classical banking towards peer-to-peer financing at large scale.
In this paper, we have laid out the foundations of the BitShares network
aimed to shift the paradigm of classical banking towards
a large-scale peer-to-peer financial infrastructure.
(to finance = to provide funding for a person or enterprise)