A significant gap persists in how firms manage the burgeoning world of cryptocurrency trading by their employees, according to a new study released today, . The Fifth Annual Crypto & Compliance Market Study, conducted by StarCompliance, reveals that 63 percent of firms globally permit employee crypto trading without any pre-approval process, raising concerns about potential conflicts of interest and regulatory breaches.
The study, which surveyed firms across the globe, highlights a growing disconnect between the increasing regulatory scrutiny of digital assets and the internal policies governing employee participation in the crypto market. This lack of oversight leaves companies vulnerable to risks including insider trading and the mishandling of material, nonpublic information (MNPI), particularly as the regulatory landscape surrounding cryptocurrencies continues to evolve.
Adding to the concern, the study found that a substantial 79 percent of firms globally do not plan to implement a crypto trading policy in . This inaction suggests a widespread reluctance to address the inherent risks associated with employee crypto trading, despite mounting pressure from regulators worldwide.
“As digital asset regulation matures into clear, defined standards globally, firms can move forward with greater confidence in building comprehensive compliance programs,” said Steve Brown, Head of Business Development at StarCompliance. “Our data shows that firms which formalized employee crypto trading policies early are better positioned as regulations take shape, while those without clear controls now face growing pressure to catch up using established regulatory roadmaps.”
Governance and Transparency Remain Key Challenges
The study identifies inadequate governance as a primary concern. Over 63 percent of respondents reported a complete absence of a formal policy governing employee cryptocurrency trading, while 37 percent confirmed the existence of a policy, underscoring a significant policy gap across the industry. This lack of formalized rules creates a breeding ground for potential compliance failures.
Beyond the absence of policies, a lack of transparency is also identified as a critical issue. More than 50 percent of those surveyed cited limited transparency as the biggest challenge in monitoring employee crypto transactions and detecting potential conflicts of interest or misuse of MNPI. Without adequate visibility into employee crypto activity, firms struggle to effectively manage risk and maintain compliance.
Preparedness for Regulation Lags Behind Regulatory Momentum
The study also reveals a concerning level of unpreparedness among firms regarding evolving crypto regulations. 75 percent of respondents assessed their organizations as “rather unprepared” or “very unprepared” to handle the risks associated with crypto, tokenization and prediction markets. This suggests that many firms are playing catch-up as regulators worldwide move to establish clearer frameworks for digital asset oversight.
The response to impending regulatory requirements is largely passive. 46 percent of firms are adopting a wait-and-see approach, while 25 percent are planning to implement changes but have not yet taken action. Only 21 percent are actively taking decisive steps to prepare for the evolving regulatory landscape, and a small 8 percent are even unaware of the need to do so.
The Need for Proactive Compliance Solutions
The findings of the StarCompliance study underscore the urgent need for firms to prioritize the development and implementation of robust crypto compliance programs. The risks associated with unmonitored employee crypto trading are substantial, and the consequences of non-compliance could be severe, including financial penalties, reputational damage, and legal action.
StarCompliance offers a range of compliance solutions designed to address these challenges, including automated pre-approval processes, real-time risk detection, and continuous monitoring capabilities. These tools enable firms to provide a streamlined experience for employees who wish to trade or sell crypto, while simultaneously maintaining the necessary transparency to protect their business.
The study’s release comes at a pivotal moment for the digital asset industry. As regulatory clarity increases, firms will face increasing pressure to demonstrate a commitment to compliance. Those that proactively invest in robust compliance programs will be best positioned to navigate the evolving regulatory landscape and capitalize on the opportunities presented by the growing crypto market. Those that lag behind risk facing significant challenges and potential setbacks.
