Crypto Regulation is Struggling to Keep Pace with Rapid Adoption – Exclusive Insights

Regulatory bodies worldwide are grappling with the rapid expansion of cryptocurrency adoption, as cybercriminals exploit jurisdictional loopholes and light-touch oversight. The UK’s Financial Conduct Authority has recently accelerated crypto approvals, acknowledging the need to align regulation with innovation. Global crypto ownership has surged to 562 million people, a 33% increase from 2023, creating fertile ground for illicit activities.

Jurisdictional arbitrage, peer-to-peer markets, and forged e-KYC documents are among the weak points criminals target. Decentralized finance platforms further complicate enforcement by avoiding classification as financial intermediaries. Nearly 100 countries are adopting the FATF Travel Rule, while Europe’s MiCA framework aims to standardize oversight.