CryptoEdu Report Exposes 2025 CeFi Gaps in Trust and Transparency
Despite CeFi's key role in digital asset trading, these platforms continue to face challenges that hinder the trust of both retail and institutional investors. The paper dissects how platforms like OKX, KuCoin, Binance, and Bybit continue to lack core safeguards: from opaque token listings and governance theater to arbitration clauses that strip retail users of legal recourse.
Among the key findings:
No Real-Time Risk Monitoring: In the case of the OM token crash, OKX issued alerts only after significant retail losses, raising concerns about the timeliness of risk disclosures.
Conflicted Exchange Roles: KuCoin's involvement in the promotion, listing, and sale of its own PUMP token, highlights a potential lack of separation between platform operations and token issuances.
Retail Dispute Resolution Constraints: Legal agreements on some platforms, including OKX and Binance, are limiting retail users' legal options through arbitration clauses and class action waivers.
Informal Compensation Practices: Bybit's public pledge to reimburse users after a security incident shows that it lacked a formalized claims process or clearly defined user protections.
No Cross-Exchange Standards: The industry still lacks a unified framework for listings, surveillance, post-incident response, and dispute resolution.
Governance Transparency Challenges: In the wake of recent market events, some platforms, including OKX, have undertaken internal restructuring. However, these actions have not yet translated into updated listing policies or expanded user protections.
The report also outlines actionable reforms: enforceable listing criteria, standardized crisis response, structural user protections, and independent oversight mechanisms.
CryptoEdu continues its mission to develop digital literacy and support conscientious participants in the crypto market, raising standards and trust in a rapidly developing industry.
The full report is available via the link: https://cryptoedu.uk/why-crypto-exchanges-still-fail-retail-and-institutions-standards-in-2025
About CryptoEdu and Drofa Comms
CryptoEdu by Drofa Comms is an educational initiative designed to enhance digital asset literacy and support businesses in the crypto space.
Drofa Comms is a global PR consulting agency proudly representing the leading finance and fintech firms. Since 2011, it has brought founders and their ventures into the worldwide spotlight, meticulously crafting compelling brand identities and seamlessly communicating them to diverse audiences. With an HQ in London, UK, Drofa Comms boasts a portfolio of high-profile clients in the finance and fintech sectors. Its major clients include commercial and investment banks, AMCs and AIFs, trading platforms, exchanges, payment solutions, and blockchain companies.
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