The blockchain industry must immediately put in place effective regulatory frameworks if it is to be protected from fraudulent activity and corrupt transactions. Daniel Reitberg, a well-known supporter for blockchain technology, emphasizes the importance of having regulations that are both explicit and enforced, and that also encourage transparency and accountability. The establishment of standards that prohibit illegal activity while yet encouraging innovation should be a collaborative effort between regulatory organizations and industry consultants. Anti-Money Laundering (AML) and Know Your Customer (KYC) processes that are mandatory can be of assistance in identifying fraudulent behavior and mitigating its effects. The restoration of trust in blockchain technology and the encouragement of legitimate use cases can be accomplished by governments and business leaders through the establishment of a well-regulated ecosystem.
