[pjc50]

Fortunately all the cryptocurrency in and out transactions are irrevocably documented on a public legder.

[JumpCrisscross]

> all the cryptocurrency in and out transactions are irrevocably documented on a public legder

The blockchain doesn't (consistently) tell you who owns which wallets, nor if they're a terrorist financier or money launderer. This is besides the point that "exchange" has a specific legal meaning under the Securities Exchange Act of 1934, as amended.

[ceejayoz]

One exchange user selling to another user on the same exchange (or to themselves, i.e. a wash trade) needn't hit the public ledger.

[oarsinsync]

Indeed. Only when crypto funds leave the exchange does it hit the ledger. When it’s in the exchange, it’s all in their private database.

[atomical]

That doesn't even scratch the surface of illegal trading activities that are probably taking place.