Thought Leadership

Opinion: With great power comes great responsibility

Author
Aidan Larkin
Co-founder and CEO

Our co-founder and CEO Aidan Larkin addresses the alarming potential for harm within the crypto sector, highlighted by a recent case in South Korea where executives were charged with stealing from their customers.

This case underscores the urgent need for rigorous regulation and enforcement in the crypto sector—a topic Aidan recently discussed at the Astana International Financial Centre in Kazakhstan.

Aidan emphasises the need for the crypto industry to adhere to higher standards than traditional finance and compares the lack of regulation to an automotive industry without safety measures.

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The scale of the potential harm in crypto laid bare. 

Almost a billion dollars - allegedly stolen in a single case.

“The execs are detained on charges of stealing 1.1 trillion won ($830 million) in cryptocurrency from 16,000 Haru Invest customers.”

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An astonishing case that has been rumbling for a year has started to become clear in South Korea.

The timing of this case was very relevant for me as I was recently onstage in the Astana International Financial Centre (AIFC) in Kazakstan alongside my industry colleagues, highlighting this very potential for massive fraud and how to detect and enforce against bad actors. 

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“With great power comes great responsibility”

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The crypto sector has to be held to a higher standard than traditional finance, because the very attributes that make it so innovative and attractive are also the reasons we need to have effective regulation and robust enforcement capabilities. 

The speed, scale, ease and vast sums involved combined with the complexity of recovery prospects are a match made in hell for victims, law enforcement or regulators trying to combat bad actors. 

Imagine the motor industry and the carnage if we didn’t have speed limits, driving tests, seat belts or airbags? 

Kazakhstan's recent advancements in regulating virtual assets provides a valuable model for other countries. While there's still much work to be done across the entire sector, these steps represent significant progress toward creating a safer and more secure crypto ecosystem.

Too often countries have taken a box ticking approach and changed laws or bought monitoring or investigative software without having the policies, processes or relevant staff to carry out this work that is vital to tackling illicit finance and ensuring the integrity of the International financial system.

It was a privilege to see firsthand the investment that Kazakstan has made to strengthen Central Asia’s financial systems against Illicit Finance.

Asset Reality is proud to work with RUSI, CFCS, the British Embassy and regional partners from Kyrgyzstan and Uzbekistan to continue to develop an effective asset recovery system to seize illicit virtual assets.

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Read more:

‍https://www.coindesk.com/policy/2024/02/06/haru-invest-execs-arrested-in-south-korea-for-allegedly-stealing-828m-worth-of-crypto-report/

Co-founder and CEO @ Asset Reality

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