Name Price24H (%)
Bitcoin (BTC)
Ethereum (ETH)
Litecoin (LTC)
Cryptocurrency, Cryptocurrency Exchange, Featured

Crypto Regulations: The Need for a Compliance-Driven Crypto Broker Platform

Cryptocurrencies have been around for more than 10 years, growing from virtually nothing to a thriving trillion-dollar global industry, and are poised to grow even more. The rising market capitalization has brought digital assets under the radar of governments, banks, and financial institutions, as well as fringe elements from the cybercriminal community. The previous year documented a record-high $14 billion worth of illicit transactions in digital assets. Though a mere 0.15% of the total transaction volume of $15.8 trillion, finance regulators worldwide have already started enforcing regulations, mainly for the purpose of investor asset protection. Here are all the reasons why a compliance-driven crypto broker platform is essential for institutional investors and enterprises making an entry into digital asset trading services. 

The Need for Crypto Regulations and Compliance

One of the biggest contributors to crypto’s appeal among capital gain investors is its volatility. The “Wild Wild West”-Esque volatility of crypto markets can provide well over 100% returns in a day if one happens to be successful in selecting the right digital asset. Decentralized Finance(DeFi) protocols often project astronomically high returns, leading to investors around the world pumping billions into DeFi products. DeFi trading had catapulted over 900% in 2021.  

The negative side-effect of this trend was the proportional growth of crypto-related crimes. Chainalysis’s Crypto Crime reported a 516% year-to-year increase in digital assets theft. 72% of the total amount stolen could be traced back to DeFi protocols. This year, the crypto bear phase made things worse, starting with the fall of stablecoin Terra Luna in May 2022, followed by the subsequent bankruptcy of Celsius Network, and the insolvency of Three Arrows Capital- a Singapore-based crypto asset management fund with estimated assets worth $18 billion. 

For an economical estimate, the Terra Luna had wiped off more than $500 billion from crypto markets. Poor risk management decisions led to the devaluation of the now-insolvent Celsius Network from its reported asset value exceeding $25 billion to $4.3 billion, with an equity value of a negative $1.2 billion, which means the total liabilities exceeded its assets by $1.2 billion.

Blockchain pioneer Raj Chowdhury had previously voiced his opinion on the need for crypto regulation without stalling innovation, stating:

“The stablecoin disaster reflects a need for proper redressal of underlying issues and adherence to a standardized framework. The domino effect can be prevented with proper regulatory steps upholding the spirit of innovation.”

The above-mentioned incidents were examples of poor management choices emboldening the voices of crypto-critics within governments and financial regulatory organizations worldwide. On the other hand, a notable section of the crypto community also believes that regulation is essential in the way stringent quality control checks function.  

Also Read: Is Your Crypto Wallet Safe From Hackers? Here’s How You Can Protect it!

Worldwide Crypto Regulations Enforcement 

The current year saw several nations implementing crypto regulations across the world. Now, there can be a debate regarding the governments’ ulterior motive to monitor and influence the rapidly-evolving crypto industry under the guile of consumer protection. Ironically, the creation of the world’s first cryptocurrency(Bitcoin) was inspired by the lack of trust in the US government’s conventional role as the issuer of fiat USD currency following the 2008-09 Great Financial Depression. In fact, the soaring popularity of cryptocurrencies in nations suffering from hyperinflation can also be attributed to the citizen’s distrust in their government’s ability to regulate inflation. 

However, debates won’t change the fact that crypto regulation bills are being drafted and enforced in countries all over the world. While Australia announced plans of “Token Mapping” of digital assets this week on the 22nd, the UK had already announced new crypto compliance protocols during April. The UK Treasury intends to create legislation for the regulation of stablecoin for payments and empowered their government to supervise through authorized regulatory bodies such as the Financial Conduct Authority(FCA). 

The European Union announced the controversial MiCA Bill in June this year. The Markets in Crypto Assets Bill is designed to regulate both cryptos and stablecoins. It would also need cryptocurrency firms to disclose all crypto transactions occurring on their platform. It was announced following the US Securities and Exchange Commission(SEC) declaration of compliance requirements for all crypto exchanges to operate within US territory. The exchanges need to have SEC registration and adhere to necessary financial laws.  

Steering Through the Challenges of Crypto Regulations

Enterprises planning to diversify and enter digital assets trading services need to acknowledge there is no other way around crypto regulations. The logical perspective should focus around leveraging business growth opportunities, and compliance with these regulations are essential for gaining both investor trust and consumer confidence. 

Now, there are three general ways of setting up a crypto trading business:

  • Building a Crypto Exchange recruiting talent and acquiring resources. 
  • Purchasing a reputed white label crypto exchange solution.
  • Acquiring a crypto broker platform for a nominal monthly subscription. 

The last 2 options are usually preferred by businesses, not only for efficient time management and cost-cutting but also to ensure compliance with the existing crypto regulations. Global crypto exchanges like PayBito offer these solutions, ensuring the products adhere to the cryptocurrency laws across the globe. 

Crypto Broker Platform: B2B SaaS Crypto Trading Solutions

Crypto broker platforms offer a unique opportunity for enterprises to delve into digital assets trading bypassing the initial setup. The services can be set-up instantaneously within minutes and even with zero coding experience. Prospective participants get a brand new functional exchange compliant with all the latest crypto laws and regulations, which might be difficult to keep track of.  

Compliance with Crypto Regulation

For example, an institution willing to operate within the US will need to adhere and comply will not only the SEC but also the following enforcement agencies/regulatory frameworks:

  1. CFTC
  2. FinCEN
  3. OFAC
  4. IRS
  5. OCC
  6. State Regulations
  7. Eliminate Barriers to Innovation, Act of 2021.

The compliance fundamentals may be shortened as under:

  1. KYC and AML for customer due diligence, based on risk assessment.
  2. Identifying PEPs(politically exposed persons). 
  3. Document verification and client screening, avoiding clients on sanction lists. 
  4. Adhering to FCPA(Foreign Corrupt Practices Act), ABAC (Anti Bribery and Anti Corruption Act).
  5. Regular activity monitoring for the identification of unusual or potentially suspicious activities.
  6. Identifying ultimate beneficial owners across client entities.
  7. Assisting law enforcement with proper documentation.
  8. Using advanced technology such as data analytics to ensure efficient compliance. 

Crypto Broker Platform Features

The PayBito Crypto Broker Platform features:

  • Multiple Currency Support: Fiat and Crypto

The crypto broker platform offers trading options in more than 20 fiat denominations and trending cryptocurrencies, with additional options for further integration.

  • Institution-Grade Security and Performance

Bank-level security is vital for crypto trading. The PayBito crypto trading platform features three-point architecture, IP tracking, geo-fencing, DDoS mitigation, 2FA, FIX-API, SegWit, ERC 20 compatibility, BIPS, DB encryption, Firebase, and more.

  • Unmatched Trading Experience

The crypto broker platform offers an intuitive UI/UX and several trading options including multiple order types and trading modules, algorithmic trading, report views, and more.

  • Consistent Liquidity

With access to over 400 cryptocurrency markets across the globe, the PayBito crypto broker platform enables traders to gain leverage on the crypto market volatility. 

  •  KYC/AML Compliance

Sort out KYC/AML hassles effortlessly with the mandatory inbuilt KYC/AML requirements for customers. 

  • Multi-device Compatibility

Crypto services all across PayBito are accessible on multiple devices(Desktop/Laptop App, smartphones, iPhone) and multiple OS platforms.

  • Dedicated Support and Assistance

The US-based PayBito exchange has a dedicated team for round-the-clock support and assistance, in multiple languages.


Despite widespread criticism, crypto regulatory frameworks are necessary for ensuring improvement and saving investor wealth. The compliance is also necessary to reduce the extent of illegal financing through cryptocurrencies. The PayBito crypto broker platform offers a comprehensive solution that ensures compliance with the latest regulations for institutional investors and enterprises venturing into crypto trading.

Leave a Comment

Your email address will not be published. Required fields are marked *

Explore The Blockchain World With Us,

Get Blockchain Enterprise Solution From HashCash