Adhering to Regulations Doesn't Eliminate Risks in Cryptocurrency | Opinion

Regulatory Compliance Limitations: While regulatory compliance can deter bad actors, it fails to address the primary risks in crypto, such as operational failures and technical incompetence, which can lead to significant losses in a matter of seconds.

Need for Self-Regulation: The crypto industry requires a self-regulatory framework based on measurable risk metrics, like the Probability of Loss, to provide a more accurate assessment of a project's viability beyond mere compliance checks.

Misconceptions About Compliance: Compliance is often mistaken for safety, as it primarily focuses on legal adherence rather than operational integrity, leaving projects vulnerable to failures that can occur despite having all necessary licenses.

Emerging Trust Models: The current trust model in the crypto space is flawed, relying on superficial indicators; a shift towards evaluating the actual probability of failure is necessary for better risk assessment and market stability.