1. Know Your Customer (KYC) rules: Regulators are requiring cryptocurrency exchanges to verify the identity of their customers, creating a digital audit trail that identifies who is trading which asset where. This is aimed at reducing fraud and manipulation through improved transparency and accountability.
2. Anti-Money Laundering (AML): AML laws are being applied to cryptocurrency exchanges to help prevent the laundering of money obtained through illegal activities. It requires exchanges to keep records of customer identities and transactions.
3. Market Surveillance: Regulators are monitoring the cryptocurrency markets for suspicious activities such as pump and dump schemes and price manipulation. They are also introducing technology to analyze trading patterns in order to detect and investigate any market abuse.
4. Investor Education: Regulators are introducing investor education programs to raise awareness about the potential risks of investing in cryptocurrencies and how to identify fraudulent practices.
5. Enhanced Reporting Requirements: Regulators are increasing the reporting requirements for cryptocurrency exchanges to ensure that all transactions and activities are recorded and reported accurately. This data can then be used by regulators to identify and investigate potential fraud and manipulation.