Finance Magnates spoke with Dave Shrier, founder and CEO of Distilled Analytics, about trends in regulatory compliance in the cryptocurrency industry. Dave is also a lecturer at MIT and an associate fellow at Oxford University.
”The Crypto Industry Has Struggled” With KYC and AML “For a Long Time”
“The crypto space absolutely has a significant need for better AML/KYC (anti-money laundering/know your customer,” Dave said. “These are standard regulations in the industry that help govern compliance with law. The crypto industry has struggled with this for a long time.”
“New solutions are needed,” he continued, “so Distilled Analytics is building those solutions around AML/KYC. There’s certainly an opportunity to help within the crypto space, although we as a company are not directly involved in that area today.”
“There are a couple of major issues. The first is that we say a couple of folks within the crypto space essentially seek to defy the laws of gravity. They say, 'we’re building something new that’s outside of government control, and so it doesn’t have to comply with government regulation--that’s for old people'.”
“I’m paraphrasing, but not too much,” he continued. “I’ve had some pretty heated arguments with people operating in this sector because I say, ‘look, that’s fine if you’re not the citizen of any country and do business outside of the purview of any country on the planet, and that’s very difficult to do.’”
Dave explained that in order to remain out of the scope of regulation, a company would have to establish itself somewhere outside of the planet earth. “As soon as you start paying for goods or services, moving money into or taking money out of crypto technology into other forms of currency or money or goods or services, you now are in the scope or purview of government.”
Essentially, “whether (these people) like it or not, Bitcoin is regulated in a number of domiciles. There are just a lot of people who are not complying with regulations.”
Some Regulators Expect the Crypto Industry to Push Legal Boundaries
“This is not uncommon in any new technology adoption scheme,” Dave continued. “For example, according to reports that I’ve read, Uber knowingly violated a number of local taxi license requirements. Their strategy was ‘we’re gonna do things quickly and in some places fly under the radar so that we’ll get so big and essential that governments will be forced to change the regulations to let us operate.’”
“In the crypto space, several government regulators I have spoken to have expressed the philosophy that they like to see innovation happen around the edges, and they try to not intervene too early...and when it gets bigger, that’s when they step in to regulate it.”
“What we’re seeing with Bitcoin is (that) it’s been regulated, but no enforcement has occurred. Now, enforcement is starting to occur."
Regulators are Taking “Fairly Progressive” Approaches
“I’ve spent a lot of time talking to regulators policy makers, and among others, the OECD and the EU are trying to do what I consider to be fairly progressive approaches to thinking about crypto or blockchain, and trying to actually enable a new economy and not quash innovation.”
Could use your help - I’m working with the OECD - OCDE on supply chain & #blockchain particularly around Responsible Business Conduct. Please, tell us about relevant blockchain projects and companies here: https://t.co/Ri9gxvh0Ht
Crypto Companies Don’t Comply with Governments and Don’t Follow Industry Security Practices
“So today, a lot of companies say that on the one hand, they don’t have to comply with any government regulation, and on the other hand, they don’t have a lot of the risk management controls in place that conventional institutions do.”
“So if you’re a bank, you’re a vendor to a bank, you typically have to comply with something called SOC2, which is a set of requirements around cybersecurity that ensure that your organization is complying with best practices."
“A bunch of crypto companies just ignore that,” he explained. “And (when I say) crypto companies, I include wallets and exchanges. So we have seen some pretty substantial thefts and pretty overt breaches of crypto through weak cybersecurity. It’s particularly embarrassing when you see people who are themselves running security technology companies who do things like use an old password that’s been published already on password hack lists.”
”There’s a Lot of Manipulation That’s There’s no Protection Against”
Dave explained that good security practices come down to a few basic principles: “A), using basic cybersecurity practices in running your business is important. B) complying with a rigorous set of cyber risk management policies like SOC2 is important, but then C) we get into market and control risk.”
“A lot of crypto exchanges allow completely free flow of tokens. This means that unlike Nasdaq, or the NYSE, or Deutsche Borse, or the LSS, if there are wild fluctuations in price and clear price manipulation, the exchange has the ability to detect it and step in and intervene and freeze trading or unwind trading, or whatever is necessary to clean up the problem.”
“That doesn’t exist in the crypto exchange world to any meaningful degree, if at all. There’s kind of a libertarian view that it should not exist, but what it means is that it’s really hard to use this stuff to buy bread or pay your employees, because it’s so volatile. And based on what I understand from people who are insiders, there is a lot of manipulation going on that there’s no protection against, really.”
“A wealth of information creates a poverty of attention” - Herbert Simon
“I don’t mean that this is true for every cryptocurrency all the time,” he added, “but I have been told that there have been notable price movements that have been structured.”
To hear the full interview with Dave Shrier, please click the Soundcloud or Youtube links.
This is an excerpt. To hear the full interview with Dave Shrier, please click the Soundcloud or Youtube links.
Finance Magnates spoke with Dave Shrier, founder and CEO of Distilled Analytics, about trends in regulatory compliance in the cryptocurrency industry. Dave is also a lecturer at MIT and an associate fellow at Oxford University.
”The Crypto Industry Has Struggled” With KYC and AML “For a Long Time”
“The crypto space absolutely has a significant need for better AML/KYC (anti-money laundering/know your customer,” Dave said. “These are standard regulations in the industry that help govern compliance with law. The crypto industry has struggled with this for a long time.”
“New solutions are needed,” he continued, “so Distilled Analytics is building those solutions around AML/KYC. There’s certainly an opportunity to help within the crypto space, although we as a company are not directly involved in that area today.”
“There are a couple of major issues. The first is that we say a couple of folks within the crypto space essentially seek to defy the laws of gravity. They say, 'we’re building something new that’s outside of government control, and so it doesn’t have to comply with government regulation--that’s for old people'.”
“I’m paraphrasing, but not too much,” he continued. “I’ve had some pretty heated arguments with people operating in this sector because I say, ‘look, that’s fine if you’re not the citizen of any country and do business outside of the purview of any country on the planet, and that’s very difficult to do.’”
Dave explained that in order to remain out of the scope of regulation, a company would have to establish itself somewhere outside of the planet earth. “As soon as you start paying for goods or services, moving money into or taking money out of crypto technology into other forms of currency or money or goods or services, you now are in the scope or purview of government.”
Essentially, “whether (these people) like it or not, Bitcoin is regulated in a number of domiciles. There are just a lot of people who are not complying with regulations.”
Some Regulators Expect the Crypto Industry to Push Legal Boundaries
“This is not uncommon in any new technology adoption scheme,” Dave continued. “For example, according to reports that I’ve read, Uber knowingly violated a number of local taxi license requirements. Their strategy was ‘we’re gonna do things quickly and in some places fly under the radar so that we’ll get so big and essential that governments will be forced to change the regulations to let us operate.’”
“In the crypto space, several government regulators I have spoken to have expressed the philosophy that they like to see innovation happen around the edges, and they try to not intervene too early...and when it gets bigger, that’s when they step in to regulate it.”
“What we’re seeing with Bitcoin is (that) it’s been regulated, but no enforcement has occurred. Now, enforcement is starting to occur."
Regulators are Taking “Fairly Progressive” Approaches
“I’ve spent a lot of time talking to regulators policy makers, and among others, the OECD and the EU are trying to do what I consider to be fairly progressive approaches to thinking about crypto or blockchain, and trying to actually enable a new economy and not quash innovation.”
Could use your help - I’m working with the OECD - OCDE on supply chain & #blockchain particularly around Responsible Business Conduct. Please, tell us about relevant blockchain projects and companies here: https://t.co/Ri9gxvh0Ht
Crypto Companies Don’t Comply with Governments and Don’t Follow Industry Security Practices
“So today, a lot of companies say that on the one hand, they don’t have to comply with any government regulation, and on the other hand, they don’t have a lot of the risk management controls in place that conventional institutions do.”
“So if you’re a bank, you’re a vendor to a bank, you typically have to comply with something called SOC2, which is a set of requirements around cybersecurity that ensure that your organization is complying with best practices."
“A bunch of crypto companies just ignore that,” he explained. “And (when I say) crypto companies, I include wallets and exchanges. So we have seen some pretty substantial thefts and pretty overt breaches of crypto through weak cybersecurity. It’s particularly embarrassing when you see people who are themselves running security technology companies who do things like use an old password that’s been published already on password hack lists.”
”There’s a Lot of Manipulation That’s There’s no Protection Against”
Dave explained that good security practices come down to a few basic principles: “A), using basic cybersecurity practices in running your business is important. B) complying with a rigorous set of cyber risk management policies like SOC2 is important, but then C) we get into market and control risk.”
“A lot of crypto exchanges allow completely free flow of tokens. This means that unlike Nasdaq, or the NYSE, or Deutsche Borse, or the LSS, if there are wild fluctuations in price and clear price manipulation, the exchange has the ability to detect it and step in and intervene and freeze trading or unwind trading, or whatever is necessary to clean up the problem.”
“That doesn’t exist in the crypto exchange world to any meaningful degree, if at all. There’s kind of a libertarian view that it should not exist, but what it means is that it’s really hard to use this stuff to buy bread or pay your employees, because it’s so volatile. And based on what I understand from people who are insiders, there is a lot of manipulation going on that there’s no protection against, really.”
“A wealth of information creates a poverty of attention” - Herbert Simon
“I don’t mean that this is true for every cryptocurrency all the time,” he added, “but I have been told that there have been notable price movements that have been structured.”
To hear the full interview with Dave Shrier, please click the Soundcloud or Youtube links.
Rachel is a self-taught crypto geek and a passionate writer. She believes in the power that the written word has to educate, connect and empower individuals to make positive and powerful financial choices. She is the Podcast Host and a Cryptocurrency Editor at Finance Magnates.
Schwab Aims Crypto Custody at Its $5 Trillion Advisor Channel by 2027
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War Stories: Lessons from 20 Years in Markets (the pain, the pitfalls and the profits)
War Stories: Lessons from 20 Years in Markets (the pain, the pitfalls and the profits)
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The trades that taught me the most aren't the ones that worked. They're the ones that didn't — or the ones I almost caught and didn't have the nerve to ride. In this session, I'll tell you about the Brexit miss, the SNB shocker that nearly handed me a 5400% return, the BoJ surprise that punched me in the gut, and a few wins along the way. Each story carries a lesson, but the lessons aren't the point. Everyone who trades long enough collects a portfolio of moments like these; what separates the people who stay in the game is what they do with them.
The trades that taught me the most aren't the ones that worked. They're the ones that didn't — or the ones I almost caught and didn't have the nerve to ride. In this session, I'll tell you about the Brexit miss, the SNB shocker that nearly handed me a 5400% return, the BoJ surprise that punched me in the gut, and a few wins along the way. Each story carries a lesson, but the lessons aren't the point. Everyone who trades long enough collects a portfolio of moments like these; what separates the people who stay in the game is what they do with them.
The trades that taught me the most aren't the ones that worked. They're the ones that didn't — or the ones I almost caught and didn't have the nerve to ride. In this session, I'll tell you about the Brexit miss, the SNB shocker that nearly handed me a 5400% return, the BoJ surprise that punched me in the gut, and a few wins along the way. Each story carries a lesson, but the lessons aren't the point. Everyone who trades long enough collects a portfolio of moments like these; what separates the people who stay in the game is what they do with them.
The trades that taught me the most aren't the ones that worked. They're the ones that didn't — or the ones I almost caught and didn't have the nerve to ride. In this session, I'll tell you about the Brexit miss, the SNB shocker that nearly handed me a 5400% return, the BoJ surprise that punched me in the gut, and a few wins along the way. Each story carries a lesson, but the lessons aren't the point. Everyone who trades long enough collects a portfolio of moments like these; what separates the people who stay in the game is what they do with them.
The trades that taught me the most aren't the ones that worked. They're the ones that didn't — or the ones I almost caught and didn't have the nerve to ride. In this session, I'll tell you about the Brexit miss, the SNB shocker that nearly handed me a 5400% return, the BoJ surprise that punched me in the gut, and a few wins along the way. Each story carries a lesson, but the lessons aren't the point. Everyone who trades long enough collects a portfolio of moments like these; what separates the people who stay in the game is what they do with them.
The Engine and the Fuel: How AI & Data Drives African Future
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If AI is the engine, data is the fuel. Without quality, accessible data, AI cannot work well; and without the right mindset, data remains just numbers instead of insight. In this session, leading experts will explore how AI and data are democratizing opportunities for businesses and personal growth. Discover practical ways to make AI accessible today, anticipate its transformative impact on African markets, and learn actionable steps to prepare for what's next. Let's talk about:
-How AI and data drive business efficiency and innovation in trading and fintech
-AI tools to elevate trading or business strategies
-How to access and maximise the power of data and AI
-Emerging AI and data trends in Africa and their economic ripple effects
If AI is the engine, data is the fuel. Without quality, accessible data, AI cannot work well; and without the right mindset, data remains just numbers instead of insight. In this session, leading experts will explore how AI and data are democratizing opportunities for businesses and personal growth. Discover practical ways to make AI accessible today, anticipate its transformative impact on African markets, and learn actionable steps to prepare for what's next. Let's talk about:
-How AI and data drive business efficiency and innovation in trading and fintech
-AI tools to elevate trading or business strategies
-How to access and maximise the power of data and AI
-Emerging AI and data trends in Africa and their economic ripple effects
If AI is the engine, data is the fuel. Without quality, accessible data, AI cannot work well; and without the right mindset, data remains just numbers instead of insight. In this session, leading experts will explore how AI and data are democratizing opportunities for businesses and personal growth. Discover practical ways to make AI accessible today, anticipate its transformative impact on African markets, and learn actionable steps to prepare for what's next. Let's talk about:
-How AI and data drive business efficiency and innovation in trading and fintech
-AI tools to elevate trading or business strategies
-How to access and maximise the power of data and AI
-Emerging AI and data trends in Africa and their economic ripple effects
If AI is the engine, data is the fuel. Without quality, accessible data, AI cannot work well; and without the right mindset, data remains just numbers instead of insight. In this session, leading experts will explore how AI and data are democratizing opportunities for businesses and personal growth. Discover practical ways to make AI accessible today, anticipate its transformative impact on African markets, and learn actionable steps to prepare for what's next. Let's talk about:
-How AI and data drive business efficiency and innovation in trading and fintech
-AI tools to elevate trading or business strategies
-How to access and maximise the power of data and AI
-Emerging AI and data trends in Africa and their economic ripple effects
If AI is the engine, data is the fuel. Without quality, accessible data, AI cannot work well; and without the right mindset, data remains just numbers instead of insight. In this session, leading experts will explore how AI and data are democratizing opportunities for businesses and personal growth. Discover practical ways to make AI accessible today, anticipate its transformative impact on African markets, and learn actionable steps to prepare for what's next. Let's talk about:
-How AI and data drive business efficiency and innovation in trading and fintech
-AI tools to elevate trading or business strategies
-How to access and maximise the power of data and AI
-Emerging AI and data trends in Africa and their economic ripple effects
If AI is the engine, data is the fuel. Without quality, accessible data, AI cannot work well; and without the right mindset, data remains just numbers instead of insight. In this session, leading experts will explore how AI and data are democratizing opportunities for businesses and personal growth. Discover practical ways to make AI accessible today, anticipate its transformative impact on African markets, and learn actionable steps to prepare for what's next. Let's talk about:
-How AI and data drive business efficiency and innovation in trading and fintech
-AI tools to elevate trading or business strategies
-How to access and maximise the power of data and AI
-Emerging AI and data trends in Africa and their economic ripple effects
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Most market post-mortems describe what happened to prices. Few describe what happened in the trading room while the position was open: the entry conviction, the moments that tested it, and the exit decision that closed the book.
This session brings one seasoned trader to the stage for an unfiltered account of the position that still defines how they think about markets.
Attendees will walk away with:
-A first-hand account of how a conviction trade is built, from thesis and entry through position management and exit
-Understanding of what turns a market observation into a live position, and what holds it when conditions shift
-Insight into how timing, execution quality, and market structure shaped the final result
-Perspective on what the trade revealed about edge, risk tolerance, and when to hold through a position moving against you
-Clarity on what separates a well-built trade from a well-timed one
Most market post-mortems describe what happened to prices. Few describe what happened in the trading room while the position was open: the entry conviction, the moments that tested it, and the exit decision that closed the book.
This session brings one seasoned trader to the stage for an unfiltered account of the position that still defines how they think about markets.
Attendees will walk away with:
-A first-hand account of how a conviction trade is built, from thesis and entry through position management and exit
-Understanding of what turns a market observation into a live position, and what holds it when conditions shift
-Insight into how timing, execution quality, and market structure shaped the final result
-Perspective on what the trade revealed about edge, risk tolerance, and when to hold through a position moving against you
-Clarity on what separates a well-built trade from a well-timed one
Most market post-mortems describe what happened to prices. Few describe what happened in the trading room while the position was open: the entry conviction, the moments that tested it, and the exit decision that closed the book.
This session brings one seasoned trader to the stage for an unfiltered account of the position that still defines how they think about markets.
Attendees will walk away with:
-A first-hand account of how a conviction trade is built, from thesis and entry through position management and exit
-Understanding of what turns a market observation into a live position, and what holds it when conditions shift
-Insight into how timing, execution quality, and market structure shaped the final result
-Perspective on what the trade revealed about edge, risk tolerance, and when to hold through a position moving against you
-Clarity on what separates a well-built trade from a well-timed one
Most market post-mortems describe what happened to prices. Few describe what happened in the trading room while the position was open: the entry conviction, the moments that tested it, and the exit decision that closed the book.
This session brings one seasoned trader to the stage for an unfiltered account of the position that still defines how they think about markets.
Attendees will walk away with:
-A first-hand account of how a conviction trade is built, from thesis and entry through position management and exit
-Understanding of what turns a market observation into a live position, and what holds it when conditions shift
-Insight into how timing, execution quality, and market structure shaped the final result
-Perspective on what the trade revealed about edge, risk tolerance, and when to hold through a position moving against you
-Clarity on what separates a well-built trade from a well-timed one
Most market post-mortems describe what happened to prices. Few describe what happened in the trading room while the position was open: the entry conviction, the moments that tested it, and the exit decision that closed the book.
This session brings one seasoned trader to the stage for an unfiltered account of the position that still defines how they think about markets.
Attendees will walk away with:
-A first-hand account of how a conviction trade is built, from thesis and entry through position management and exit
-Understanding of what turns a market observation into a live position, and what holds it when conditions shift
-Insight into how timing, execution quality, and market structure shaped the final result
-Perspective on what the trade revealed about edge, risk tolerance, and when to hold through a position moving against you
-Clarity on what separates a well-built trade from a well-timed one
Most market post-mortems describe what happened to prices. Few describe what happened in the trading room while the position was open: the entry conviction, the moments that tested it, and the exit decision that closed the book.
This session brings one seasoned trader to the stage for an unfiltered account of the position that still defines how they think about markets.
Attendees will walk away with:
-A first-hand account of how a conviction trade is built, from thesis and entry through position management and exit
-Understanding of what turns a market observation into a live position, and what holds it when conditions shift
-Insight into how timing, execution quality, and market structure shaped the final result
-Perspective on what the trade revealed about edge, risk tolerance, and when to hold through a position moving against you
-Clarity on what separates a well-built trade from a well-timed one
Agentic Inequality: Democratizing Financial Access Through AI & Blockchain
Agentic Inequality: Democratizing Financial Access Through AI & Blockchain
Agentic Inequality: Democratizing Financial Access Through AI & Blockchain
Agentic Inequality: Democratizing Financial Access Through AI & Blockchain
Agentic Inequality: Democratizing Financial Access Through AI & Blockchain
Agentic Inequality: Democratizing Financial Access Through AI & Blockchain
As crypto and CFD trading continue to expand across Africa, access to advanced tools and market insights remains uneven. This session explores how AI and blockchain can bridge that gap by empowering informal traders and underserved communities to participate more effectively in digital financial markets. The discussion will focus on practical applications of technology to improve accessibility, education, and investment outcomes in both formal and informal sectors.
In this discussion, we will explore:
-The role of AI in democratizing access to trading tools, insights, and strategy development
-How crypto and blockchain can enable broader participation beyond traditional financial systems
-Addressing access barriers: infrastructure, education, and affordability in underserved communities
-Opportunities for brokers and platforms to tap into the informal trading economy
As crypto and CFD trading continue to expand across Africa, access to advanced tools and market insights remains uneven. This session explores how AI and blockchain can bridge that gap by empowering informal traders and underserved communities to participate more effectively in digital financial markets. The discussion will focus on practical applications of technology to improve accessibility, education, and investment outcomes in both formal and informal sectors.
In this discussion, we will explore:
-The role of AI in democratizing access to trading tools, insights, and strategy development
-How crypto and blockchain can enable broader participation beyond traditional financial systems
-Addressing access barriers: infrastructure, education, and affordability in underserved communities
-Opportunities for brokers and platforms to tap into the informal trading economy
As crypto and CFD trading continue to expand across Africa, access to advanced tools and market insights remains uneven. This session explores how AI and blockchain can bridge that gap by empowering informal traders and underserved communities to participate more effectively in digital financial markets. The discussion will focus on practical applications of technology to improve accessibility, education, and investment outcomes in both formal and informal sectors.
In this discussion, we will explore:
-The role of AI in democratizing access to trading tools, insights, and strategy development
-How crypto and blockchain can enable broader participation beyond traditional financial systems
-Addressing access barriers: infrastructure, education, and affordability in underserved communities
-Opportunities for brokers and platforms to tap into the informal trading economy
As crypto and CFD trading continue to expand across Africa, access to advanced tools and market insights remains uneven. This session explores how AI and blockchain can bridge that gap by empowering informal traders and underserved communities to participate more effectively in digital financial markets. The discussion will focus on practical applications of technology to improve accessibility, education, and investment outcomes in both formal and informal sectors.
In this discussion, we will explore:
-The role of AI in democratizing access to trading tools, insights, and strategy development
-How crypto and blockchain can enable broader participation beyond traditional financial systems
-Addressing access barriers: infrastructure, education, and affordability in underserved communities
-Opportunities for brokers and platforms to tap into the informal trading economy
As crypto and CFD trading continue to expand across Africa, access to advanced tools and market insights remains uneven. This session explores how AI and blockchain can bridge that gap by empowering informal traders and underserved communities to participate more effectively in digital financial markets. The discussion will focus on practical applications of technology to improve accessibility, education, and investment outcomes in both formal and informal sectors.
In this discussion, we will explore:
-The role of AI in democratizing access to trading tools, insights, and strategy development
-How crypto and blockchain can enable broader participation beyond traditional financial systems
-Addressing access barriers: infrastructure, education, and affordability in underserved communities
-Opportunities for brokers and platforms to tap into the informal trading economy
As crypto and CFD trading continue to expand across Africa, access to advanced tools and market insights remains uneven. This session explores how AI and blockchain can bridge that gap by empowering informal traders and underserved communities to participate more effectively in digital financial markets. The discussion will focus on practical applications of technology to improve accessibility, education, and investment outcomes in both formal and informal sectors.
In this discussion, we will explore:
-The role of AI in democratizing access to trading tools, insights, and strategy development
-How crypto and blockchain can enable broader participation beyond traditional financial systems
-Addressing access barriers: infrastructure, education, and affordability in underserved communities
-Opportunities for brokers and platforms to tap into the informal trading economy