$9.3 billion. Let that number sink in. That’s the wealth incinerated by crypto scams just in 2024 so far, based on FBI estimates. It’s about more than dollars and cents. It’s not just targeted abuse on a wide scale, it’s ruined lives and lost retirements and the profound erosion of faith in the digital utopia we were sold. This isn't a blip. To claim otherwise is a systemic failure, and to continue pretending that’s the case is a luxury we can no longer afford.

Ignoring Crypto's Wild West Days?

For years, the crypto evangelists have marketed decentralization and freedom from government waking up in your business as base principles. But $9.3 billion shouts that the “Wild West” approach can’t continue. The myth that regulation kills innovation doesn’t hold water. At the same time, seniors are being methodically scammed out of their accumulated savings by “pig butchering” scams. We need to be honest: the current landscape invites exploitation.

The underlying absence of coordinated, well-defined regulatory architectures is an open wound. Why? These fraudulent exchanges can do so without any meaningful accountability. This environment further results in unregistered securities offerings presented as “tokens,” providing consumers with few—or potentially no—recourses should they become victims of fraud. Regulations are needed, but what kind? We do need robust KYC/AML (Know Your Customer/Anti-Money Laundering) compliance to ensure that illicit funds can’t move through the system. To build a safer crypto market, we need robust consumer protection laws for crypto exchanges that hold them accountable for user funds safety. Second, we need to clearly articulate what a crypto asset is. Together, this information will be crucial in allowing us to stop potential securities fraud from hiding in plain sight.

Others claim that regulation is the slippery slope to government overreach and crypto’s demise. Think about the stock market. It’s overregulated, and it’s one of the most creative and innovative drivers of economic growth. Clear, consistent regulation creates the baseline level of trust required to draw in institutional investment and help create long-term stability. It is not about killing crypto, it’s about letting it grow up.

Education: The Missing Crypto Key?

Regulation is only half the battle. The other half is education. FBI’s Internet Crime Complaint Center 2022 report again underscores the overwhelming toll on our most vulnerable – our elders, who lost a shocking $2.8 billion. And not only financial literacy, though that’s a key component, but digital literacy. For one, scammers are taking advantage of cracks in a complicated digital ecosystem. They are using counterfeit investment opportunities, tech support scams and even IRS impersonation schemes to rip-off unsuspecting victims.

We require a large-scale, government-led campaign to inform the public about the potential dangers and benefits of investing in crypto. This isn't about promoting or demonizing crypto; it's about empowering people to make informed decisions. Engage with local colleges, non-profits, and public libraries to provide both outreach and unbiased educational opportunities. Train consumers to recognize fraudulent schemes. Assist them in safeguarding their digital identities and ensuring they transact with cryptocurrency securely.

Imagine a future in which every retiree is fluent in the fundamentals of distributed ledgers. They may be the first to spot a scam investment website and are always wary of unexpected approaches. That's the future we need to build.

Singapore's Example: A Middle Ground?

Here in Singapore, where I’m based, we’ve pursued a much more measured approach toward the regulation of crypto than the US has. The Monetary Authority of Singapore (MAS) has implemented strict licensing requirements for crypto firms and has warned the public about the risks of investing in unregulated crypto assets. To be sure, some critics of Singapore’s approach have found it overly draconian. This approach has successfully sheltered Americans from the worst excesses of the crypto Wild West. There is a happy place to be found, producing responsible innovation where creativity meets careful and appropriate regulation.

That $9.3 billion black eye should be a wakeup call. We can no longer pretend these systemic vulnerabilities in the crypto space don’t exist. What we need is responsible regulation, strong education and innovation, and a commitment to work together from policymakers, industry leaders and educators. The time for complacency is over. Join us in creating a digital future that is safe, secure, and welcoming to everyone. The alternative is unthinkable.

Let's face it, we are at war with an enemy that doesn't care about age, gender or background. The question is, will you be ready?