Since last year, the word regulation has driven many emotions through the crypto community. These emotions have ranged from abject fear and hatred to optimism. It’s fair to say that regulation has been something of a tinderbox, and it’s also fair to say that most of the emotions felt on the negative end of the spectrum are due to lack of knowledge – a fear of the unknown.
Whether you’re pro-regulation or anti-regulation is of no relevance. Regulations are necessary, and they’re here.
As we developed the ETERBASE platform, we wanted to ensure that it was robust and safe. We noticed that many exchanges are compliant with few regulations. In some instances, there was no regulatory compliance at all.
Take Know Your Customer, for example. KYC regulations are there to ensure that you are who you say you are, and they are a cornerstone of fraud and money-laundering prevention. Sadly, some exchanges allow traders to sign up without any KYC checks made, thereby allowing such activities.
The recent addition of the EU’s Fifth Anti-Money Laundering Directive, or 5AMLD, extended the existing directive’s scope to include anonymous prepaid cards, cryptocurrency exchanges, and virtual money. Essentially, if an exchange is not compliant with 5AMLD and is dealing with European customers, they are effectively breaking a law that is designed to prevent crime.
If, as a community, we wish to eradicate arguments that prevent wider adoption of cryptocurrencies, such as that crypto is used to fund crime, we need to eliminate bad actors from participation. Regulatory compliance gives us the tools we need to do that.
KYC, and other regulations such as Anti-Money Laundering and Counter-Terrorism Financing, exist to curtail the activities of criminals, but newer laws, such as GDPR are designed to protect users too, and we’ll be delving into that in another post. The safety of you and your assets is paramount, and that is why regulatory compliance is essential for exchanges.
At ETERBASE, we designed our platform to be compliant with global regulations from the ground up. We desired to build a strong, robust platform on which trading was safer for everyone – a platform that eliminates the ability of criminals to profit from trading – and move toward a completely regulated trading ecosystem.
Thanks for being a part of ETERBASE.