- Increased government oversight and regulation of cryptocurrency exchanges
- Stricter AML (anti-money laundering) and KYC (know your customer) requirements
- Emergence of new regulatory frameworks for decentralized finance (DeFi) platforms
- Focus on consumer protection and investor education
Increased Government Oversight of Cryptocurrency Exchanges
In 2024, governments around the world have ramped up their efforts to regulate cryptocurrency exchanges. This includes licensing requirements, reporting obligations, and compliance with anti-fraud and security standards.
Stricter AML and KYC Requirements
To combat illicit activities such as money laundering and terrorist financing, regulators have imposed stricter AML and KYC requirements on cryptocurrency exchanges and service providers. This involves thorough identity verification processes for customers and enhanced transaction monitoring.
New Regulatory Frameworks for DeFi Platforms
As decentralized finance (DeFi) continues to gain popularity, regulators have started to develop new frameworks to oversee these platforms. This may involve addressing issues related to smart contracts, liquidity pools, and decentralized autonomous organizations (DAOs).
Focus on Consumer Protection and Investor Education
Regulators are placing a greater emphasis on protecting consumers and educating investors about the risks associated with cryptocurrencies. This includes measures to prevent fraud, ensure transparency, and provide clear information about the nature of digital assets.