Crypto regulations: A must for user security
Regulated crypto exchanges put consumers first, offer enhanced protection
When it comes to cryptocurrency regulations, Liechtenstein is widely recognized as having the most transparent legislation for digital assets and blockchain technologies. The country’s cryptocurrency policies are unparalleled in their entirety and serve as a model for other nations. In 2020, Liechtenstein adopted a new legal framework for cryptocurrencies and blockchain-based technologies, known as Token and Trusted Technology Service Provider Act (TVTG)
LCX, a secure, regulated and transparent cryptocurrency exchange, has secured the approval of eight registrations of FMA under the Token and Trusted Technology Service Provider Act (TVTG). Regulated and compliant with Liechtenstein blockchain laws, LCX offers the ultimate protection to consumers. At LCX, the consumer funds are separated from the company’s funds by law, and in the event of insolvency or mismanagement, the consumer funds cannot be touched.
LCX strongly believes that, given the rapidly changing nature of the industry, cryptocurrency exchanges need to adopt stricter security protocols to ensure the safety of both funds and personal data. LCX places great emphasis on safety and security and takes proactive measures to facilitate safe trading.
To improve security protocols in the exchange, LCX worked with Hacken to undergo a comprehensive cyber security evaluation and received the highest possible rating. In addition, as a regulated cryptocurrency exchange, LCX is subject to similar supervisory standards and compliance requirements, such as customer due diligence (KYC and AML) regulations, as those required by financial institutions or licensed banks.
Conclusion: The lack of regulation poses threats to the cryptocurrency market, but implementing regulations can promote transparency and security
The recent events at major unregulated cryptocurrency exchanges have raised concerns among consumers regarding the safety of their funds and investments. Due to the absence of legal obligations and segregation requirements, these unregulated exchanges are inherently risky and prone to fraudulent and malicious practices. However, by implementing regulations and imposing disclosure requirements, regulators can promote transparency and accountability in the industry. This in turn can establish trust, safety and security, which will be critical to the continued growth and prosperity of the cryptocurrency market. Moreover, regulations can also deter illegal activities such as money laundering and the financing of terrorism.
