The Ponzi Scheme Challenge Facing the Crypto industry

Ponzi schemes are common challenges that face the crypto industry and the financial sector in general. After the crypto bull run of 2017, many Ponzi schemes began to crop up promising investors in the crypto world fast and huge cash returns. They pointed to the over 1000% jump of the industry’s market cap in just a few months as proof that they could achieve this for investors. However, most of these were scams that ended up disappearing with funds given to them by investors. Dealing with this challenge can only be done via vigorous regulation. Most of the people who run these schemes are not regulated.
With regulation, users could be able to tell the chances of being scammed through a crypto investment scheme. It is the reason that Burency exchange gets it’s License and banking solution from Bahrain. The nation has great regulation for crypto, which ensures that those who use its services can be sure it is not a pyramid scheme. Without regulation, few people would trust this exchange to honor its pledge. Despite the consumer protection that proper regulation could bring to the industry, most nations globally have chosen to bury their heads in the sand as their citizens suffer the effects of an unregulated industry. It is why nations such as Bahrain are an important beacon for the world on the benefits of regulating the crypto sector.
