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Regulatory Environment

The regulatory environment in the blockchain and cryptocurrency sector is loosely defined and open to abuse by unscrupulous actors and even well-intentioned actors that jumped in way over their heads with other people’s money. Outright scams and project failures occur far too frequently, tarnishing the reputation of the blockchain and crypto sector, and giving regulators more reasons to clamp down hard on the sector.

Most countries require an individual to be an accredited investor to participate in many of the best project presales. This gives higher net worth individuals a distinct advantage over the individual investor who can only participate in the public sale, paying a premium for the token and yet again increasing the odds of them losing money.

The regulatory environment is seemingly skewed toward protecting the interests of accredited investors, and the interests of legacy financial institutions that may feel threatened, or may be seeking to garner more control over the blockchain and cryptocurrency sector than they currently have.