Crypto Oversight Is No Longer Optional
Survey findings reveal widening gaps in employee crypto trading compliance
The Fifth Annual Crypto and Compliance Market Study from StarCompliance (Star) highlights a growing disconnect between regulatory momentum and how firms are managing employee crypto trading in practice. While regulatory frameworks for digital assets continue to mature globally, many firms remain underprepared, relying on manual processes or postponing action altogether.
The study offers a clear snapshot of where the industry stands today and where risk is quietly accumulating.
What the Study Reveals
Despite years of regulatory attention on crypto and digital assets, foundational controls remain weak across much of the industry. The study found that 63 percent of firms globally permit employee crypto trading without pre-approval, exposing organizations to conflicts of interest, insider trading risk, and potential misuse of material nonpublic information.
Even more concerning, 79 percent of firms report that they do not plan to implement a crypto trading policy in 2026. This signals not just a slow pace of adoption, but a widening gap between regulatory expectations and firm readiness.
The findings reinforce a broader theme seen throughout the study. Crypto dealing governance remains immature, visibility into employee activity is limited, and preparedness for tokenization and prediction markets is low. While some firms are moving decisively, most remain in planning mode or taking a wait and see approach.
The Cost of Inaction
Firms delaying implementing digital controls face mounting risks:
- Regulatory Risk: With regulation already in place in a number of jurisdictions (e.g., EU, Dubai, Canada, Japan and Brazil) and pending regulations in the US and UK, firms without controls face potential enforcement actions, fines, and reputational damage.
- Operational Risk: The 84% of firms citing visibility gaps are blind to potential insider trading, front-running, conflicts of interest, and MNPI violations occurring in their organizations today.
- Competitive Risk: As 21% of firms move aggressively to implement controls, laggards risk falling behind industry standards, losing competitive advantage in recruiting, and retaining talent who want to participate in digital asset markets compliantly.
- Reputational Risk: A single high-profile crypto trading violation by an employee can trigger regulatory scrutiny, client concerns, and lasting brand damage, particularly as media attention on crypto compliance intensifies.
Moving from Reactive to Proactive: A Clear Path Forward
The regulatory roadmap for digital assets is now far clearer than it was even a few years ago. Leading firms are no longer waiting for perfect certainty. They are taking practical steps to modernize compliance programs and reduce exposure.
- Establish formal crypto trading policies aligned with emerging global standards
- Implement pre-clearance requirements for crypto transactions to prevent conflicts
- Deploy automated monitoring solutions to gain visibility into employee wallet activity
- Prepare for tokenized asset compliance as traditional securities migrate to blockchain rails
- Build frameworks today that can adapt as regulations continue to evolve
How Star Helps Firms Close the Gap
Star helps firms move from reactive oversight to proactive compliance by embedding crypto and tokenized asset supervision directly into their existing compliance programs.
With Star’s Crypto Dealing and Tokenized Asset Compliance Solutions, firms can manage employee crypto trading with the same rigor applied to traditional securities. The platform enables automated pre approval workflows for crypto transactions, continuous monitoring of employee activity, and real-time visibility into potential conflicts of interest and material nonpublic information risks.
Star also supports firms preparing for the next phase of digital markets by helping them build adaptable compliance frameworks that can evolve alongside tokenization initiatives and expanding regulatory expectations.
To learn more about how Star can help, click [HERE] to book a demo.
Fifth Annual Crypto & Compliance Study
