Challenges and Opportunities in Regulating Blockchain and Cryptocurrency

The tension within the industry revolves around the perception of blockchains being both beneficial and detrimental to criminals. There is a need for the implementation of traditional financial system expectations in the blockchain space, such as the travel rule and the need for transparency and record-keeping when moving large sums of money. Policymakers and regulators need to be more open to experimenting with blockchain technology, and there is a significant opportunity for developers to improve anti-money laundering (AML) practices within the sector. The current AML model in traditional finance is criticized for its fragility, potential for creating data honeypots, and usage of insecure technologies for data transmission and storage. Overall, blockchain technology has the potential to enhance AML practices and create a more secure system than that of traditional finance.