

others
Crypto Exchanges Could Set the Regulatory Pace for the Entire Industry – Crypto News
HodlX Guest Post Submit Your Post
Blockchain-based organizations and crypto projects have long operated in a minefield of shifting and unclear regulations.
But now, with the full implementation of the EU’s MiCA (Market in Crypto Assets) legislation and speculation about what Trump’s supposed crypto-friendly regulatory outline may look like, there is an air of optimism across the industry.
Despite the positivity echoing from the US, turbulent prices, economic obstacles and crypto’s natural volatility counterweight any favorable developments, leaving the industry in a familiar polarized state.
Crypto exchanges
as the backbone of the entire ecosystem, providing access to thousands of different types of tokens face the challenge of navigating a patchwork of vague or non-existent legal statuses.How they handle this unpredictable period will have major implications for the entire industry.
Is enough being done
Whether centralized or decentralized, crypto exchanges serve as a gateway to the Web 3.0 economy
from facilitating market activity and ensuring liquidity to executing token launches and offering fiat on/off-ramps, exchanges serve as an irreplaceable infrastructure piece.Because exchanges are the primary mechanism granting access to assets with less-than-clear regulatory statuses, they bear the brunt of regulatory scrutiny.
As such, exchanges
particularly CEXs (centralized exchanges) have been consistently in the crosshairs of national regulators, especially in the US, EU and UK.Despite a promising outlook resonating from the US, both exchanges must take a more proactive approach toward regulatory compliance.
By and large, the industry has gradually embraced some standard regulatory procedures such as KYC (know your customer).
This is a promising development, but it likely won’t be enough to appease regulators across all markets, especially as some explore how to reel in DeFi.
While the industry has been increasingly open to the more complex and strenuous AML (anti-money laundering) enforcement, this too is often overlooked.
Proper AML enforcement, in addition to KYC, will soon be something exchanges can’t ignore.
When operating within a given jurisdiction, bypassing one or both of these measures is no longer acceptable.
Currently, MiCA doesn’t explicitly regulate full DEXs (decentralized exchanges).
However, DEXs with a degree of centralization can be targeted under MiCA, and the European Commission is investigating how to apply existing financial laws to DeFi protocols, including those governed by DAOS (decentralized autonomous organizations).
Navigating the evolving regulatory landscape represents a thorn in the side of most crypto organizations, but tackling these challenges head-on will provide much-needed stability.
All types of crypto exchanges must understand that the initial challenge of compliance will, in time, bear fruit and that they should view it as a down payment on the future.
Staying ahead of the regulatory curve
CEXs would benefit from actively engaging with regional regulators to demonstrate their willingness to comply with local laws.
This would also help them stay in the loop as new rules emerge, affording them valuable time to make any necessary adjustments.
In addition to ensuring the robustness of KYC and AML protocols, both centralized and decentralized exchanges would be remiss not to conduct voluntary financial auditing to enhance trust.
DEXs would be wise to use reputable third-party services to audit their smart contracts and security frameworks to ensure they are properly protected against increasingly sophisticated threats.
Despite DEXs operating in a legal gray area, implementing on-chain compliance tools and forming self-regulatory coalitions to establish unofficial standards will reduce any potential obstacles if governments take tough stands.
This can be done without undermining decentralization by leveraging cryptographic solutions, and for DAO-operated DEXs, this could be done through hybrid models that embed automated compliance decisions in smart contracts.
In response to crypto’s shifting regulatory environment, exchanges that embrace technological innovations to assist with compliance procedures position themselves for long-term sustainability.
Rapid advances in AI have led to numerous solutions that can help resource-strapped projects and larger blockchain organizations make the necessary regulatory preparations.
Powerful AI tools can be used to monitor transactions and detect suspicious activities in real time, helping to drastically reduce threats that target exchanges and associated wallets.
While the industry has seen a decline in scams and hacks, the recent massive ByBit hack is a cruel reminder of why regulatory processes can’t be ignored.
Combatting fraud and crimes is paramount to the industry’s sustainability, and anticipating future developments requires prioritizing compliance prep.
Without proper readiness for the unpredictability factor of regulatory developments across the globe, crypto exchanges will waste the industry’s recent momentum, ultimately disrupting its potential.
To ensure exchanges maintain their crucial role as Web 3.0 gatekeepers, they must acknowledge that regulatory uncertainty will remain for now.
Amid this speculation and uncertainty, risks should be minimized, and flexibility and adaptability should be maximized to ensure exchanges are ready for any potential scenario.
By staying on top of compliance trends, fostering transparency and implementing strategic legal frameworks, crypto exchanges won’t only remain a pivotal Web 3.0 component but also be in a position to facilitate innovation.
Omri Hanover is the general manager of Gems Trade, a regulated CEX that is part of the Gems ecosystem. With a background in business development and strategy within the blockchain industry, Omri focuses on building sustainable trading infrastructure and fostering meaningful partnerships between projects and users.
Follow Us on Twitter Facebook Telegram
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
-
Cryptocurrency1 week ago
Whale Sells $407K TRUMP, Loses $1.37M in Exit – Crypto News
-
Blockchain1 week ago
Robinhood Dealing With Fallout of Tokenized Equities Offering – Crypto News
-
Cryptocurrency1 week ago
Satoshi-Era Bitcoin Whale Moves Another $2.42 Billion, What’s Happening? – Crypto News
-
Blockchain6 days ago
Ripple and Ctrl Alt Team to Support Real Estate Tokenization – Crypto News
-
Technology6 days ago
Fed Rate Cut Odds Surge As Powell’s Future Hangs In The Balance – Crypto News
-
Cryptocurrency1 week ago
Cardano’s $1.22 target: Why traders should be aware of THIS ADA setup – Crypto News
-
Cryptocurrency1 week ago
Bitcoin Breaches $120K, Institutional FOMO Takes and House Debate Propel Gains – Crypto News
-
Technology6 days ago
Fed Rate Cut Odds Surge As Powell’s Future Hangs In The Balance – Crypto News
-
Cryptocurrency1 week ago
Why Is Bitcoin Up Today? – Crypto News
-
Cryptocurrency1 week ago
Strategy Resumes Bitcoin Buys, Boosting Holdings to Over $72 Billion in BTC – Crypto News
-
Business1 week ago
Pepe Coin Rich List June 2025: Who’s Holding Highest PEPE as it Nears Half a Million Holders? – Crypto News
-
Cryptocurrency1 week ago
It’s a Statement, Says Bitfinex Alpha – Crypto News
-
others6 days ago
EUR/USD recovers with trade talks and Fed independence in focus – Crypto News
-
Cryptocurrency5 days ago
Bitcoin trades near $119K after new all-time high; Coinbase rebrands wallet to ‘Base App’ – Crypto News
-
Business5 days ago
XLM Is More Bullish Than ETH, SOL, And XRP, Peter Brandt Declares – Crypto News
-
Cryptocurrency1 week ago
Stellar [XLM] bulls exhausted after rally – Is a pullback nearby? – Crypto News
-
others6 days ago
Top Crypto Exchange by Trading Volume Binance Announces Airdrop for New Ethereum (ETH) Ecosystem Altcoin – Crypto News
-
others6 days ago
VanEck Details Key Drivers Boosting Bitcoin Price, Including Corporate Treasury Demand, ETF Flows and More – Crypto News
-
Business6 days ago
XRP Lawsuit Update: Ripple Paid $125M in Cash, Settlement Hinges on Appeal – Crypto News
-
Blockchain1 week ago
Ziglu Faces $2.7M Shortfall as Crypto Fintech Enters Special Administration – Crypto News
-
Blockchain1 week ago
UK Banks Should not Issue Stablecoins – Crypto News
-
Cryptocurrency1 week ago
Donald Trump Jr. backs social media startup aiming to become a crypto powerhouse – Crypto News
-
Blockchain1 week ago
The Bitcoin Liquidity Supercycle Has Just Begun: Hedge Fund CEO – Crypto News
-
Technology1 week ago
Google, Anthropic, OpenAI and xAI join US defence to tackle national security with AI – Crypto News
-
Business1 week ago
CME XRP Futures Hit $1.6B In Total Trading Volume Since Launch – Crypto News
-
Cryptocurrency1 week ago
Fed’s Hammack Raises Inflation Concerns Amid Push For Interest Rate Cut – Crypto News
-
Metaverse1 week ago
Why voice is emerging as India’s next frontier for AI interaction – Crypto News
-
Metaverse7 days ago
Nvidia’s Jensen Huang says AI ‘fundamental like electricity’, praises Chinese models as ‘catalyst for global progress’ – Crypto News
-
Cryptocurrency6 days ago
1inch price forecast: 1INCH hits 7-month high after double digit gains – Crypto News
-
Cryptocurrency6 days ago
1inch price forecast: 1INCH hits 7-month high after double digit gains – Crypto News
-
Business6 days ago
Ethereum Price Prediction- Bulls Target $3,700 As ETH Treasury Accumulation Soars – Crypto News
-
others5 days ago
GBP/USD rallies on US PPI dip and Trump’s potential Powell removal – Crypto News
-
others5 days ago
GBP/USD rallies on US PPI dip and Trump’s potential Powell removal – Crypto News
-
Cryptocurrency5 days ago
Anarchy, crime and stablecoins – Blockworks – Crypto News
-
Cryptocurrency1 week ago
Friday charts: The rise of zero-sum thinking – Crypto News
-
others1 week ago
Crypto Hacker Who Drained $42,000,000 From GMX Goes White Hat, Returns Funds in Exchange for $5,000,000 Bounty – Crypto News
-
Cryptocurrency1 week ago
Pump.fun Concludes $500M ICO in 12 Minutes — But Something Doesn’t Add Up – Crypto News
-
Cryptocurrency1 week ago
Why Are So Many Crypto Games Shutting Down? Experts Weigh In – Crypto News
-
De-fi1 week ago
Robinhood Opens Ether and Solana Staking to US Users – Crypto News
-
Cryptocurrency1 week ago
Top 3 altcoins under $1 worth watching: Sei, Ethena, Arbitrum – Crypto News
-
De-fi1 week ago
Ripple’s RLUSD Market Cap Passes $515M, Flips TrueUSD – Crypto News
-
others1 week ago
Bitcoin Critic Vanguard Becomes Strategy’s (MSTR) Largest Shareholder – Crypto News
-
De-fi6 days ago
U.S. Marshals Peg Federal Bitcoin Holdings at 28,988 Tokens Worth $3.4 B – Crypto News
-
Cryptocurrency5 days ago
Russia’s $85 Billion Sberbank to Launch Crypto Custody Services – Crypto News
-
Blockchain5 days ago
Nasdaq Exchange Files SEC Form to List Staking Ethereum ETF – Crypto News
-
Blockchain1 week ago
Altcoins Chase New Highs After Bitcoin Hits $123,000 – Crypto News
-
Technology1 week ago
V Guard INSIGHT-G BLDC fan review: Cool performer with a premium look – Crypto News
-
Cryptocurrency1 week ago
Fed’s Hammack Raises Inflation Concerns Amid Push For Interest Rate Cut – Crypto News
-
Cryptocurrency1 week ago
Omni Network skyrockets 180% as Bitcoin hits $118K: is $10 next? – Crypto News
-
De-fi1 week ago
DeFi TVL Surges Past $126B, Up Over 45% Since April – Crypto News