As crypto continues to explode into the mainstream, one thing is certain: regulation is inescapable.
It’s getting tricky, though. 56% of virtual asset service providers still lack strong know your customer (KYC) practices, according to a 2020 report by blockchain analysis firm, CipherTrace.
And decentralized finance (DeFi) — apps that want to revolutionize borrowing, lending and other things banks do — has exploded with popularity. Exchanges dealing with DeFi tokens (known as decentralized exchanges, DEXs) require very little user verification.
It’s simply too difficult for authorities to keep up right now.
Some Want to Comply, Though
But a number of exchanges are keen to push for KYC. Hong Kong-registered crypto company Crypto.com announced today 0% fees for customers who buy cryptocurrencies for 30 days after they pass KYC verification.
The service will allow users