Regulations and Legal Issues

Stay informed about local laws, report your earnings, and use regulated exchanges and wallets.

The Financial Action Task Force (FATF) sets global standards to prevent money laundering and terrorism financing in crypto.

ICOs are legal in some jurisdictions but may require regulatory approval. Many countries scrutinize them closely.

The SEC regulates securities in the US and may classify certain cryptocurrencies as securities, subjecting them to specific laws.

Governments can restrict or ban cryptocurrency use within their borders, but decentralization makes outright bans difficult to enforce.

Cryptocurrencies are highly volatile and risky. Always conduct thorough research and understand the risks.

If an exchange is hacked, users might lose funds unless the exchange has insurance or compensates the victims.

Most DEXs operate without central authority, making regulation challenging, though this may change in the future.

KYC (Know Your Customer) is a process where exchanges verify user identities to comply with legal regulations.

Regulations differ globally, covering areas like exchanges, trading, and anti-money laundering (AML) compliance.