While massive, global cyber theft and data breaches may capture the headlines, there are many other issues surrounding the future of cryptocurrency.  Fraud and cybersecurity activity is necessary for creative destruction in the cryptocurrency marketplace.  OODA CEO Matt Devost captured the current climate in the crypto market noting that: “We needed to wash all the fluff out of the system. And every week we are seeing some sort of mass destruction of a major player in that space.” 

Governmental regulation now looms large over the entire innovation ecosystem. Many governments –  and the U.S. will follow the lead – will not allow the transfer of bitcoin or digital currencies unless the identity of the recipient wallet is known.  This policy has come to be known as Know Your Customer (KVC) verification on anonymous crypto transactions and has the potential to break the anonymity-based model for much of the ecosystem.