LetsExchange / LetsExchange Blog / One of the Biggest Threats to the Crypto Industry is a Lack of Regulation – Alex J., CPO at LetsExchange

One of the Biggest Threats to the Crypto Industry is a Lack of Regulation – Alex J., CPO at LetsExchange

Jul 6, 2023 2 min read

One of the biggest threats to the cryptocurrency industry is a lack of regulation and standards, as well as the lack of knowledge and personal irresponsibility of users.

“We understand that an endless volume of sensitive information may become an object of fraudulent attacks. Starting with login credentials or private keys and finishing with personal data. Phishing attacks, malware and ransomware, smart contract vulnerabilities, social engineering attacks and many other kinds of attacks – it’s our reality right now. But all this is the consequence of two key problems, which, unfortunately, cannot be solved quickly. The first is the lack of knowledge and personal irresponsibility of users. The second is the lack of regulation and standards,” Alex J., Chief Product Officer at LetsExchange, stated in an interview with SafetyDetective.com.

Alex J. emphasized that LetsExchange.io operates based on a non-custodial model, which means users retain control over their funds throughout the exchange process. User assets are not stored on the platform. It reduces the risk of assets being compromised due to hacking or internal vulnerabilities. That is why the LetsExchange team prioritizes user education on security best practices by providing resources and guidance to assist users in protecting their funds and assets and promoting user awareness. With it, the platform empowers users to enhance their security proactively.

As for regulation, the absence of comprehensive rules and industry standards in cryptocurrency can leave users vulnerable to security risks. The lack of clear security practices and compliance guidelines may contribute to vulnerabilities and make it challenging to hold malicious actors accountable.

“To mitigate these cybersecurity threats, users and industry stakeholders must adopt best security practices and educate users on choosing and using reliable services. Additionally, industry collaboration, ongoing security research, and the development of robust security standards can help strengthen the overall security posture of the cryptocurrency industry,” he added.