1.⁠ ⁠Legal Responsibilities

a. Regulatory Compliance
Cryptocurrency platforms must adhere to the regulations and licensing requirements of the countries they operate in.

Turkey:

Compliance with MASAK (Financial Crimes Investigation Board) regulations.

Conducting Know Your Customer (KYC) checks under anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks.

International:

Adherence to FATF (Financial Action Task Force) standards.

Compliance with data privacy regulations such as GDPR.

b. Protection of User Funds
Platforms are responsible for securely storing users' deposited cryptocurrencies.

Cold Wallet Usage:

Safeguarding the majority of user funds in offline wallets to protect against cyberattacks.

Insurance:

Some platforms provide insurance policies to protect user funds (e.g., Coinbase).

c. Responsibility in Cases of Fraud and Attacks
Account Security:

Platforms may bear responsibility for unauthorized access to user accounts.

Enforcing two-factor authentication (2FA) as mandatory.

Hacker Attacks:

Platforms should have clear policies on how to compensate losses in case of a hack.


2.⁠ ⁠Ethical Responsibilities

a. Transparency

Providing clear policies on transaction fees, withdrawal times, and security procedures.

Supporting blockchain data to allow users to track their transactions.

b. User Education

Informing users about cryptocurrency usage, investment risks, and security measures.

Issuing warnings about phishing scams and fake tokens.

c. Preventing Market Manipulation

Platforms must prevent practices like “wash trading” (artificially inflating trading volume) or other manipulations within their systems.


3.⁠ ⁠Technical Responsibilities

a. Security Measures

1.⁠ ⁠Encryption:

Using high-standard encryption methods to protect user data and transactions.

2.⁠ ⁠Security Audits:

Conducting regular cybersecurity audits and penetration tests.

b. Infrastructure Reliability

Platforms must be scalable and capable of handling high transaction volumes efficiently.

Implementing emergency response plans in case of service outages.

c. Proof of Reserves

Demonstrating that user funds are genuinely held by the platform. Platforms like Binance and Kraken employ this system.


4.⁠ ⁠Examples of Legal Responsibilities of Cryptocurrency Platforms

a. Hacker Attacks

Mt. Gox (2014): A hack resulting in the theft of 850,000 Bitcoins led to the platform’s inability to refund users and eventual bankruptcy.

Binance (2019): Fully compensated user losses after a $40 million hack.

b. Market Manipulation

Cases where platforms manipulate market prices through fake transactions are subject to legal penalties.

c. Failure to Protect User Data

Platforms may face penalties under GDPR or other data protection laws in cases of data breaches.


5.⁠ ⁠User Expectations from Cryptocurrency Platforms

6.⁠ ⁠Fast and Reliable Transactions:

Minimizing transaction confirmation times and clearly explaining delays.

2.⁠ ⁠Comprehensive Customer Support:

Having an efficient support team to quickly resolve user issues.

3.⁠ ⁠Refund Policy:

Providing clear refund procedures for erroneous transactions or system malfunctions.

6.⁠ ⁠Conclusion: The Role of Platforms and User Trust

Cryptocurrency platforms are the cornerstone of trust in the industry. To maintain user confidence, they must fulfill their technical, legal, and ethical responsibilities.

Strong regulations and user education are essential to minimize fraud and security vulnerabilities.
Failure to comply with legal standards can expose both platforms and users to significant risks.