The demise of multiple crypto firms has prompted regulators around the world to undertake in depth investigations into the governance, risk management and compliance arrangements in place at firms such as Binance.
Much is made of the use of chat messaging in the day-to-day running of crypto firms. Inherently that is neither good nor bad but the discovery of the chats by regulators such as the U.S. Commodities Futures Trading Commission has highlighted the questionable governance practices in place.
Financial services firms in particular will be all too well aware that the use of unmonitored communications channels garnered billions of dollars in fines for the firms concerned – the crypto investigations have shown that regulators remain focused on all forms of electronic communication. And that electronic communications are discoverable.
