industry compliance specialists have witnessed firsthand the importance of
regulation in protecting consumers and preventing financial crimes. As a
result, it has become a common theme that the rapidly expanding crypto industry requires more
regulation, not less.
argue that cryptocurrencies’ decentralized and anonymous nature is a selling
point, the reality is that it also makes them susceptible to fraud, money
laundering, and other illegal activities.
oversight, bad actors can easily exploit the system, endangering honest
investors and consumers.
Here are some
of the reasons why the crypto industry requires more oversight:
Financial Crime Prevention
industry’s lack of regulation has resulted in numerous cases of financial
crimes such as fraud and money laundering.
For example, in
2020, the US Justice Department charged two Chinese nationals with laundering
more than $100 million in stolen cryptocurrency using “mixers” and
“chain hopping” techniques to conceal the funds’ origin and
which requires crypto exchanges and other industry participants to implement
anti-money laundering (AML) and know-your-customer (KYC) procedures, can help
prevent these types of crimes.
would make it more difficult for criminals to use the crypto industry as a
conduit for illegal activities, while also assisting law enforcement agencies
in tracking down and prosecuting those who do.
The case for NFTs: How AML
and KYC could bolster the NFT market and be key to unleashing its full
The NFT industry
is booming but its promised winds of revolution are still feeling like a slight
In fact, given
all the potential applications for NFTs, many find surprising how NFT
technology hasn’t seen mass adoption and day-to-day usage yet (other than, of course,
for artistic and speculative purposes).
The fact is,
AML compliance is perhaps one of the most important elements in building trust amongst
investors, institutions and, in a broader sense, in earning trust of the
This is perhaps
one of the reason why NFT technology hasn’t gone past the marketplace stage.
While still a
nascent industry, NFTs shown a lot of promise but it’s fairly certain that the
industry won’t be able to deliver without being able to prove that it has taken
measures to bolster its transparency and the safeguarding of stakeholders’ and investors’
It’s a common
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