2026-01-15 14:41:39

New York law enforcement agencies have recently expressed a stern stance against unlicensed crypto trading platforms. It has been disclosed that the trading volume of informal crypto markets has reached approximately $51 billion, with these black market funds primarily flowing into illegal activities such as money laundering, arms smuggling, drug trafficking, and terrorist financing.

This warning reflects a reality: crypto ATMs and unlicensed trading terminals have become blind spots for financial regulation. Law enforcement's position is clear—promoting mandatory licensing and KYC (Know Your Customer) verification as standard procedures, supplemented by criminal penalties to enhance deterrence.

What does this mean? On one hand, unlicensed platforms and gray trading channels are facing increasing policy pressure. On the other hand, compliant crypto exchanges and legitimate platforms are gaining relative advantages. For users interested in participating in crypto asset trading, choosing licensed platforms that implement KYC procedures has become even more important.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

11 Likes

Reward
11
4
Repost
Share

Comment

0/400

BearWhisperGod

· 6h ago

Here comes the mandatory KYC again, feels like regulators are determined to wipe out the gray market completely --- 510 billion in black market size, by the way, where did this data come from? Did New Yorkers compile it? --- It's true that the advantages of compliant platforms are increasing, but how can user data security be guaranteed? --- Real players have long moved on-chain, these regulations are useless to them --- It sounds like they want to legitimize the entire ecosystem, but maybe more people just can't stand it --- The criminal punishment tactic is harsh; it seems the gray market space is being squeezed tightly --- The problem is, the KYC approach itself carries risks—who will pay for user data leaks?

View OriginalReply0

Tokenomics911

· 6h ago

Once again using the excuse of "harvesting retail investors," the black market worth 51 billion is being talked about as if it's real. That KYC system, sooner or later even retail investors will be regulated to death. Unlicensed platforms are indeed wild, but how expensive are compliant platforms? New Yorkers just love to go for a one-size-fits-all approach, really pushing the crypto circle underground. This move feels like it's paving the way for big platforms.

View OriginalReply0

MoonMathMagic

· 6h ago

Here it comes again, New York's approach seems to be trying to push the entire underground market to the surface --- $51 billion in the gray area, sounds pretty scary but I think the numbers might be exaggerated --- KYC is everywhere, privacy is becoming increasingly difficult --- Speaking of which, compliant platforms are indeed safer, but the fees are really expensive --- Unlicensed exchanges should be regulated, but if this continues, how can small retail investors survive --- Law enforcement finally can't sit still anymore, they should have regulated those fake platforms long ago --- Tighter regulation is the trend, but decentralization is the essence of crypto --- Instead of cracking down on trading platforms, it's better to first target scam schemes --- Mandatory KYC seems to contradict the original ideals of cryptocurrency

View OriginalReply0

SelfMadeRuggee

· 7h ago

$51 billion black market? Why does this number sound so familiar... Regulation is coming again --- KYC should have been implemented long ago, otherwise no one would know where the money comes from --- It's over. In the future, even earning money will require real-name verification --- Compliance platform advantages are rising? Doesn't that mean small exchanges will have an even harder time --- Money laundering in the black market, at the end of the day, is due to regulatory loopholes being too big --- $51 billion... Why do I feel like the number keeps increasing --- The cumbersome KYC process is okay, mainly because people are afraid of their wallets being frozen --- New York's methods will eventually be followed elsewhere --- Unlicensed platforms are indeed chaotic, but legitimate ones also have costs that are insanely high --- People who truly use crypto have known this for a long time. Now they are calling for regulation?

View OriginalReply0