- Cryptocurrencies present a range of challenges, including jurisdictional issues and identifying wrongdoers and liability.
- Crypto platforms must comply with anti–money laundering (AML) regulations and be registered with the FCA. But more legal clarity is needed.
In the rapidly evolving world of cryptocurrencies, questions of legality and responsibility are beginning to take centre stage. One of the most prominent among these concerns is the liability of cryptocurrency platforms when investors are scammed or their cryptoassets are stolen.
To shed light on this topic, we must first outline the duties and responsibilities these platforms bear, and explain what rights and avenues for recompense an investor might have in the aftermath of a scam that targets digital assets.
Cryptoasset exchange providers are virtual spaces where users can trade, hold or sell their cryptoassets. They are similar to traditional financial institutions in some aspects, although distinct in operation given the nature of how the business takes place. So the question of liability when cryptoassets are stolen or when a scam takes place
