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Crypto Exchanges: Slow Shift to Classic Financial Industry Regulations?

Crypto Exchanges: Slow Shift to Classic Financial Industry Regulations?

Ever since Bitcoin saw the dawn of the day in 2008, the crypto industry has come a long way. Over a decade later, there are hundreds of different cryptocurrencies available in the market and numerous exchanges and trading platforms spread across geographies and time zones. While the industry has come a long way, thanks to increased adoption there are still concerns surrounding the legitimacy of various platforms and projects and a lot of people continue to look at cryptocurrencies suspiciously.

These suspicions are rightly placed, and the main reason for that is the lack of accountability on the part of platforms dealing with cryptocurrencies due to the absence of regulations governing it. The lack of a clear regulatory framework and enforcement not only encourages the operation of fraudulent platforms but exposes the crypto sector to far serious issues like money laundering and financing of illicit as well as dangerous activities. When comes to light, it ends up causing more harm to genuine crypto users due to clampdowns and other restrictive actions of governments.

In recent days, there have been numerous reports of investigations and arrests in the crypto industry mainly due to violation of AML legislation. These violations are rampant in the industry as a recent CipherTrace report states that over 56% of crypto exchanges don’t satisfy AML and KYC requirements.

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Abhishek Upadhyay

Abhishek Upadhyay

A B2B Content Writer with hands-on experience in various niches. Skilled in writing blog content, website content, SEO content & various marketing collaterals.