Cryption control is like a weak umbrella in a monsoon-op-e-eD

You know what you say: "If life gives you lemons, make lemonade out of it." But when it comes to protecting your crypto -lodges on central stock exchanges (Cexes), the old saying should be: "If life gives you regulations, create a self -reduced wallet". Self -custody is undoubtedly a better solution to protect customers' interests in crypto. Regulation alone is not enough.

The following opinion of the opinion was written by Joseph Collement, General Counsel at Bitcoin.com.

Do not understand us wrong, regulation is important. It's like a weak umbrella on a sunny day - better than nothing, but nothing that you should rely on during a monsoon. Just ask the people at Gemini who did it, even though you are out there the "most regulated" Cex out there to lose your entire "earn" customer. Talk about "earning" a bad reputation! Out of

But let's be honest, the crypto world is like the wild west. And let's be honest, the US government is like the sheriff who has just come to the city and is trying to understand this new border. Like the father, they are at a teenage party who tries to understand what is going on, but ultimately only stands in the way.

I have been working as a lawyer in crypto and dare to say that the problem with CEXs is not the regulation (or its absence), but the business model itself. If a company takes control of the funds of the customers, it is suggested to act and play with this money, like an exchange broker who plays Blackjack with their old -age credit. In the meantime, customers hold the bag (or in this case the empty wallet) when things go wrong.

“regulated” CEXs also mix services such as trade, custody and market making. In contrast to a traditional regulated stock market platform, users compete in many CEXs when trading against the stock exchange, in contrast to another customer of the stock exchange. This gives CEXs the opportunity to act in advance and against their customers, a well -known practice that is even practiced by first -class stock exchanges in the USA

and let's not forget to chop. To date, around $ 5 billion in user money has been stolen in the past 3 years, just under $ 3 billion in 2022. But not worry, the doj is always here to protect them. With their massive blows against well -known cryptocrimal organizations such as Bitzlato, make sure that your funds are safe.

Compliance with the regulations costs CEX billions of dollars of income, and the costs are often passed on to the customer. CEXs spend more money on law and compliance than for product development. This month, Coinbase invested $ 50 million in its compliance department in accordance with an agreement with NYDFS, but has 20 % of its workforce. Lawyers are blockers, not UX designers. And if you blindly follow your advice, you risk landing with the good old cookie pop-up.

What do you think about self -storage as a solution to protect cryptoisers? Do you agree that it is a better alternative to only rely on regulations, or do you think that there should be a different approach that should be persecuted? Share your thoughts in the comments below.

GASTAUTOR

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