Choosing a provider

The case for regulated crypto providers

In the fast-evolving world of digital assets, not all providers approach regulation the same way. For clients, that difference matters. While speed and agility are important, they shouldn’t come at the expense of security or reliability. When clients partner with a regulated provider, they gain a host of benefits. Most importantly, they gain the confidence to navigate a constantly changing market without disruption, knowing their funds are secure and can withstand periods of volatility.

Why some firms sideline regulation

Some crypto-native firms deprioritise regulation to reflect the culture of the digital asset world. As many firms are founded on principles of decentralisation and autonomy, they view traditional regulatory frameworks as misaligned with their ethos. Others see regulation as a potential barrier to innovation and may relocate to jurisdictions with lighter compliance requirements.

By far the most common reason, however, is practical: regulatory compliance is demanding. Meeting complex reporting requirements, passing audits and keeping up with evolving rules requires time, resources and expertise. These are challenges that some firms prefer to avoid.

Yet, BCB takes a different approach. While some firms have an ethos of avoiding regulation, BCB has a regulation-first mindset. Where others see compliance as a burden, BCB views it as an opportunity to build stronger partnerships and provide a foundation that clients can trust. 

The cost of non-compliance 

Operating without regulatory oversight can seem appealing but the risks are significant for both providers and their clients. For providers, non-compliance can lead to fines, sanctions or criminal charges. In addition, expanding across borders without adhering to local rules adds complexity, restricts access to banking services and can make partnerships with compliant entities difficult, which can hinder growth.

Clients face equally serious risks. Platforms that deprioritise regulation are more susceptible to fraud and cyberattacks, leaving clients vulnerable. In fact, in 2024, 39% of cryptocurrency exchanges experienced data breaches, with average losses reaching $5.3 million.

Beyond security, the absence of regulatory oversight can also increase market volatility and undermine investor confidence, as recent platform collapses have shown. 

Oliver Tonkin, C-founder of BCB Group, reflects on this firsthand: “In 2022-23 we had a slew of company failures – including cases involving fraud like FTX or Celsius – that has forced the industry to grow up. It’s been a steep learning curve for some and there’s been a shakeout,”

“There was an eruption of questions from clients in that period [2022-23] and we could tell them their funds were segregated and safeguarded in line with Financial Conduct Authority (FCA) regulations – their money was safe. We had to educate a lot of clients about those safeguards because they had not been thinking about it before.”

Turning compliance into a strategic advantage

The benefits of partnering with a regulated provider are clear. Beyond mitigating the risks of digital asset ownership, such as theft, hacking or operational errors, clients gain tangible advantages in security, trust and reliability. 

Regulated providers operate under strict oversight and are required to adhere to rigorous standards for safeguarding assets. This ensures that client holdings are protected and managed responsibly, giving clients peace of mind that their funds are secure.

Operational resilience is another key advantage. Strong risk management practices, contingency planning and robust security measures mean that services can continue uninterrupted even during market volatility or technical disruption. Clients benefit directly from this stability, knowing that their transactions and holdings are supported by a provider prepared to act swiftly and efficiently.

Partnering with a regulated provider also signals to investors, partners and stakeholders that a business takes compliance seriously, which can enhance reputation and strengthen relationships.

In the ever-evolving digital assets industry, selecting a provider like BCB that prioritises regulation and safety turns regulatory compliance from a legal obligation into a strategic asset.

Clients gain confidence, peace of mind and assurance that their assets are secure, operations are reliable, and their partner is committed to trust and sustainable growth even in the most volatile market conditions.