1 in 2 Crypto and Bitcoin (BTC) Platforms in Delicacy with KYC Regulation – Cryptocurrencies

BitMEX’s legal woes raise – Of course – questions about the regulations to regulate crypto-exchanges. Should traditional financial regulators have the power to regulate new finance? Decentralization, KYC procedures, financial policemen, etc. : difficult to make a balanced and coherent dish with such contrasting ingredients.

KYC procedures: a surprising study (or not really!)

The results of a study carried out by the blockchain analysis company CipherTrace on 800 exchanges (CEX, DEX and AMM) based in Europe, to the United States and at UK, show that 56% of them would not respect the KYC procedures, despite the existing laws on the fight against money laundering.

The vast majority of these exchanges would be in Europe, a continent which is however well known for its strict regulations.

The United States, the UK, the Russia and Singapore also have a large number of exchanges with flawed procedures.

CipherTrace also revealed that most exchanges do not mention their country of origin on their site or in the general conditions, a deliberate omission to avoid having to comply with the legislation.

The study also notes that the standards KYC 70% of registered exchanges in Seychelles are insufficient, making it a potential benchmark for money laundering.

Sold but not laundered

CipherTrace also studied the procedures KYC near 21 DEX : 81% of them did not have one or the procedures were flawed.

KYC crypto-exchanges procedures

The DEX however, are not the preferred platform for money laundering.

The study report indicates that $ 7.9 million in stolen tokens from KuCoin were sold on Uniswap, without having been cleared on the platform.

As the activities of DEX fall under traditional financial activities, which means they should be subject to the same regulations as banks and other financial institutions.

The CEO of CipherTrace, Dave jevans, believes that CEX would not readily agree to abide by these regulations.


Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

New finance, new regulations, new financial authorities: it should be obvious. We are trying to reconcile 2 paradigms, but do cryptocurrency users, especially early adopters, want to fit into the mold of traditional finance that they are trying to escape? It is not about creating a cryptosphere without faith or law. But we are not going to put the power of regulations in the hands of the same people, while wanting – Actually to change things.


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