You know what they say, “when life gives you lemons, make lemonade.” But when it comes to protecting your crypto funds on centralized exchanges (CEXes), the old adage should be “when life gives you regulations, make a self-custody wallet.” Self-custody is undoubtedly a better solution for protecting the interests of customers in crypto. Regulation alone is not enough.
The following opinion editorial was written by Joseph Collement, General Counsel at Bitcoin.com.
Don’t get us wrong, regulation is important. It’s like a flimsy umbrella on a sunny day – better than nothing, but not something you want to rely on during a monsoon. Just ask the folks at Gemini, who despite being the “most regulated” CEX out there, still managed to lose all of their “Earn” customer money. Talk about “earn-ing” a bad reputation! Ouch.
But let’s be real here, the crypto world is like the Wild West. And let’s be honest, the U.S. Government is like the sheriff who just got to town, trying to make sense of this new frontier. They’re like the Dad at a teenage party, trying to understand what’s going on, but ultimately just getting in the way.
Working 5+ years full-time in crypto as a lawyer, I’ll dare to say that the problem with CEXes is not…