The crypto industry has witnessed a significant shift towards regulatory compliance since its inception, as noted by James Smith, co-founder of Elliptic, a crypto compliance firm founded in 2013. Initially, only a few companies prioritized compliance, with Coinbase being an early adopter. However, the landscape changed with increased regulatory interest, particularly from entities like Fidelity and DBS Bank entering the space with established compliance standards. This shift has led to a global focus on compliance among exchanges and protocols, viewed as crucial points for Anti-Money Laundering measures. Recent incidents, such as the Bybit hack orchestrated by the Lazarus Group, highlight the need for improved security and compliance in the industry. Smith emphasized the importance of regulating liquidity providers in decentralized platforms to prevent money laundering. The industry must address these challenges to attract institutional investors and ensure a secure ecosystem. Read more AI-generated news on: https://app.chaingpt.org/news