How are cryptocurrency transactions monitored?

AML monitoring, the traditional financial approach, focuses on static data like adverse media and sanctions lists. But crypto’s decentralized nature demands a more dynamic approach. We’re talking about real-time blockchain analysis; think sophisticated algorithms scrutinizing millions of transactions per second, identifying patterns and anomalies human analysts could never spot.

Transaction tracing goes beyond simple address monitoring. It involves unraveling complex transaction networks, identifying mixers and tumblers used to obscure the origin of funds, and ultimately linking transactions to specific individuals or entities. This is crucial in combating money laundering and terrorist financing.

On-chain analytics plays a critical role. We can leverage data directly from the blockchain to pinpoint high-risk behaviors like unusually large transactions, frequent address changes, or suspiciously structured payments. This allows for proactive identification of potential illicit activities before they escalate.

Beyond simple flags: The most advanced systems integrate machine learning and AI, constantly adapting to evolving criminal tactics. These systems learn from past events, improving accuracy and effectiveness over time. This means staying ahead of the curve in the ongoing cat-and-mouse game between crypto criminals and those fighting them.

Know Your Transaction (KYT): It’s not just about Know Your Customer (KYC); it’s about understanding the *transaction* itself. The context, the volume, the counterparties – all play a role in risk assessment.

The future is automated: Expect to see increased reliance on AI-powered solutions that can not only detect suspicious activity but also predict and preemptively mitigate risks. This is where the real value lies in enhancing crypto security.

How do you monitor crypto currency?

Monitoring cryptocurrency involves a multifaceted approach leveraging diverse tools and data sources. Effective monitoring goes beyond simple price tracking.

On-Chain Metrics:

Transaction Volume & Velocity: Analyzing on-chain transaction data via platforms like Glassnode provides insights into network activity and potential market trends. High transaction volume coupled with increased velocity often suggests increased market activity and potentially bullish sentiment.
Active Addresses: A rising number of active addresses signifies growing user engagement and network adoption. This is a key indicator of long-term health and potential growth. Services like Glassnode and Santiment offer this data.
Exchange Flows: Monitoring the flow of cryptocurrencies into and out of exchanges (e.g., using data from CryptoQuant) helps gauge market sentiment. Large inflows often suggest potential selling pressure, while outflows suggest accumulation.
Miner Behavior: Analyzing miner activity, such as hash rate and mining profitability, can reveal network security and potential changes in mining profitability influencing selling pressure.

Market Sentiment & Social Data:

Social Media Sentiment: Tools that analyze social media sentiment (e.g., LunarCrush, Santiment) can provide insights into public perception and potential market movements. However, this data should be interpreted cautiously, as it’s often noisy.
News & Events: Staying abreast of relevant news and events, both positive and negative, is crucial for informed decision-making. Reputable news sources and dedicated crypto news aggregators are essential.

Technical Analysis & Trading Tools:

Advanced Trading Charts: Platforms like TradingView offer comprehensive charting tools with various technical indicators to help identify potential entry and exit points. Mastering technical analysis is essential for short-term trading.
Total Value Locked (TVL): Platforms like DefiLlama track the TVL in decentralized finance (DeFi) protocols. Changes in TVL can reflect the health and growth of specific DeFi ecosystems.

Other Important Considerations:

Diversification: Never put all your eggs in one basket. Diversify your crypto portfolio across different assets to mitigate risk.
Risk Management: Implement a robust risk management strategy, including stop-loss orders and position sizing, to protect your investments.
Security: Prioritize the security of your crypto holdings. Use reputable exchanges and secure wallets, and enable two-factor authentication (2FA).

How does the IRS monitor crypto?

The IRS employs a multi-pronged approach to crypto monitoring, far exceeding simple data matching. Blockchain analysis firms provide sophisticated tools capable of tracing transactions across various networks, identifying addresses linked to individuals through various techniques like clustering and heuristic analysis. This goes beyond merely analyzing on-chain data; it often incorporates off-chain information from exchanges, mixers, and other platforms. These tools can reconstruct complex transaction graphs, even obfuscated ones using mixers or privacy coins, though the effectiveness varies depending on the sophistication of the mixing techniques employed.

Subpoenas to exchanges are a powerful weapon. The IRS can compel exchanges to reveal user transaction history, KYC/AML data, and other relevant information linking accounts to taxpayers. The legal precedent for this is well-established. Furthermore, data matching isn’t limited to comparing reported income against known tax payments. The IRS cross-references information from various sources, including information broker reports and even social media activity (though this is less common and requires probable cause).

Information reporting requirements from exchanges themselves are increasingly common. Certain jurisdictions mandate exchanges report transactions exceeding specific thresholds to tax authorities, providing the IRS with a significant pre-emptive data stream. This shifts the burden of compliance more heavily towards the exchanges, indirectly increasing the likelihood of accurate reporting. While methods to conceal transactions exist, they are far from foolproof and incur significant risk.

Failure to report any cryptocurrency transaction, regardless of size or perceived obscurity, is extremely risky. The IRS is actively investing in its crypto capabilities, and the chances of detection are steadily increasing. Penalties for non-compliance can be severe, including substantial fines and even criminal prosecution.

How are crypto exchanges regulated?

Crypto exchange regulation is a complex, fragmented landscape. The statement “The sale of cryptocurrency is generally only regulated if the sale (i) constitutes the sale of a security under state or federal law, or (ii) is considered money transmission under state law or conduct otherwise making the person a money services business (“MSB”) under federal law” is a simplified overview. In reality, this hinges on the classification of the cryptocurrency itself. If a token is deemed a security (Howey Test), it falls under the purview of the SEC, leading to stringent registration and reporting requirements. This significantly impacts the exchange’s operations, necessitating compliance with securities laws, which vary widely between jurisdictions. Even stablecoins, aiming for dollar-peg stability, face regulatory scrutiny, often categorized as securities or payment instruments, attracting regulatory interest from agencies like the OCC (Office of the Comptroller of the Currency) and the FDIC (Federal Deposit Insurance Corporation).

The “money transmission” aspect applies when an exchange facilitates the transfer of funds, essentially acting as a money transmitter. This triggers state-level licensing requirements and often necessitates MSB registration with FinCEN (Financial Crimes Enforcement Network) at the federal level. This involves complying with anti-money laundering (AML) and know-your-customer (KYC) regulations, including robust customer due diligence processes, transaction monitoring, and suspicious activity reporting. Failure to comply with these regulations can result in significant penalties.

Furthermore, jurisdictional differences are crucial. The regulatory landscape differs dramatically across countries and even within countries, with some regions exhibiting a more permissive approach, while others implement strict controls. This creates challenges for globally operating exchanges, requiring them to navigate a complex web of legal requirements, often necessitating separate compliance strategies for each region they serve. The absence of a unified global regulatory framework for cryptocurrencies further complicates matters.

Beyond securities and money transmission, emerging areas of regulatory focus include data privacy (GDPR compliance), consumer protection (fair trading practices, safeguarding customer assets), and taxation (reporting of capital gains and losses). The ever-evolving nature of cryptocurrency technology and its applications continually pushes the boundaries of existing regulatory frameworks, leading to ongoing debates and legislative developments.

Why should cryptocurrencies be regulated?

Robust cryptocurrency regulation isn’t about stifling innovation; it’s about fostering a sustainable and trustworthy ecosystem. A well-designed framework should prioritize investor protection through mechanisms like mandatory KYC/AML compliance for exchanges and custodial services, stricter auditing requirements for stablecoins and DeFi protocols to prevent opaque operations and hidden risks, and clear disclosure rules for all token offerings, akin to SEC regulations for traditional securities.

Beyond investor protection, regulation can significantly reduce the risks associated with illicit activities. This goes beyond simple anti-money laundering measures; it includes the development of standards for tracing crypto transactions, collaborating internationally to share information on suspicious activities, and potentially leveraging blockchain analysis technologies to improve detection capabilities. Furthermore, clear tax guidelines are crucial for legitimate crypto businesses and users, encouraging transparency and preventing tax evasion.

Effective regulation should also address the systemic risks inherent in cryptocurrencies. This includes establishing frameworks for managing risks related to the volatility of crypto assets, the potential for systemic failures within DeFi protocols, and the overall stability of the crypto market. This might involve stress testing of major protocols, establishing clear bankruptcy procedures for crypto entities, and potentially creating insurance schemes to mitigate losses for investors.

Finally, a thoughtful regulatory approach can promote interoperability and innovation. Harmonized regulatory standards across jurisdictions would reduce fragmentation and create a more unified and accessible global market. It also needs to be forward-looking, adapting to the rapid technological advancements within the space, recognizing the diverse nature of crypto assets and their use cases, and promoting responsible innovation through clear guidelines and “regulatory sandboxes” for experimenting with new technologies.

How to solve illegal mining?

Combating illegal mining requires a multifaceted, blockchain-enabled approach. Simply cracking down is insufficient; a sustainable solution demands systemic change.

1. Precision Targeting with Geospatial Blockchain: Instead of broad strokes, leverage blockchain technology to map and securely register mining concessions. This transparent, immutable record, integrated with satellite imagery and AI-powered anomaly detection, pinpoints areas vulnerable to illegal activity with unprecedented accuracy, enabling preemptive resource allocation.

2. Supply Chain Traceability via Distributed Ledger Technology (DLT): Implement DLT to track the journey of mined materials from origin to market. This creates an auditable trail, making it exponentially harder to launder illegally sourced minerals and significantly deterring illicit activities. Smart contracts can automate compliance checks at each stage.

3. Decentralized Enforcement via Blockchain-Based Task Force: Establish a cross-border task force, its operations and data securely managed on a permissioned blockchain. This fosters transparency, accountability, and collaboration between national and international agencies, enhancing the efficiency and effectiveness of anti-illegal mining operations. Rewards for reporting illegal activities can be cryptographically secured and automatically distributed.

4. Formalizing Small-Scale Mining with Tokenization: Integrate small-scale miners into the formal economy through tokenization initiatives. This provides them with access to financing, markets, and training while simultaneously creating a verifiable record of their production. This system reduces their vulnerability to exploitation and the allure of illegal practices.

5. Crypto-Enabled Skills Development and Alternative Livelihoods: Offer training programs using blockchain-based certifications to equip miners with in-demand skills for the digital economy. Support the creation of sustainable alternative income sources, potentially using cryptocurrency-based microfinance initiatives, to provide attractive economic incentives for leaving illegal mining.

Geospatial Blockchain Mapping: Pinpointing vulnerable areas.
DLT Supply Chain Traceability: Creating an auditable trail.
Decentralized Blockchain Task Force: Enhancing collaboration and transparency.
Tokenized Small-Scale Mining: Formalizing and supporting miners.
Crypto-Enabled Skills Development: Creating alternative income streams.

How can we control mining?

Controlling mining requires a multifaceted approach focusing on profitability and sustainability. Shutting down illegal operations, often fueled by weak governance and corruption, is paramount. This necessitates robust monitoring, technological solutions like satellite imagery analysis, and international collaboration to cut off illicit supply chains. Profitability of legitimate operations is critical; rehabilitation of mining sites isn’t just an environmental imperative but a cost-saving measure in the long run, improving future land use potential and mitigating liability risks. Integrating eco-friendly equipment and processes, like reduced water usage techniques and improved tailings management, lowers operational costs and improves the environmental, social, and governance (ESG) profile – crucial for attracting responsible investment. Ensuring surrounding communities benefit economically and socially through job creation, infrastructure improvements, and fair revenue sharing is vital for social license to operate, reducing conflict and political risk. This involves transparent community engagement and benefit-sharing agreements. Finally, adopting lower-impact mining techniques like in-situ leaching or bioleaching minimizes environmental disturbance, resource consumption, and overall project footprint, ultimately enhancing the long-term value and sustainability of mining operations. The key is to view sustainability not as a constraint, but as a competitive advantage, driving efficiency and attracting investors seeking ESG-aligned opportunities.

How is cryptocurrency tracker?

Cryptocurrency portfolio trackers are invaluable tools for navigating the volatile world of digital assets. They act as central dashboards, aggregating data from various sources – your exchanges (like Coinbase, Binance), wallets (both hardware and software), and other crypto services.

How they work: These trackers connect securely to your accounts, pulling in your transaction history, current holdings, and associated values. This consolidated view provides a clear picture of your overall portfolio performance, including realized and unrealized gains or losses. Understanding these figures is crucial for effective tax reporting.

Benefits beyond simple tracking: The advantages extend far beyond simply seeing your numbers. A good tracker helps you:

Make informed decisions: Real-time data enables better strategic choices regarding rebalancing your portfolio, taking profits, or holding (HODLing).
Track your performance against benchmarks: Many trackers allow comparison against popular crypto indices, offering a perspective on how your portfolio performs relative to the wider market.
Simplify tax preparation: Accurate transaction history simplifies the often complex process of filing crypto taxes.
Identify potential risks and opportunities: By monitoring price fluctuations and your overall exposure, you can proactively manage your risk.

Choosing a tracker: Consider these factors when selecting a portfolio tracker:

Security: Prioritize trackers with robust security measures to protect your sensitive account information.
Supported exchanges and wallets: Ensure the tracker integrates with the platforms you use.
Features: Look for features such as tax reporting, portfolio diversification analysis, and customizable dashboards.
Pricing: Trackers range from free options with limited features to premium subscriptions offering advanced analytics.

In essence: A cryptocurrency portfolio tracker isn’t just a monitoring tool; it’s a crucial resource for informed decision-making, risk management, and maximizing your returns in the dynamic cryptocurrency market. Proper utilization can significantly enhance your overall crypto experience.

How does the government track cryptocurrency?

The IRS isn’t playing games with crypto. They’re leveraging blockchain analytics firms – sophisticated tools that can trace transactions across multiple blockchains, effectively creating a digital audit trail. Think of it as a supercharged version of bank statement reconciliation, but exponentially more complex. Exchanges are also required to report user activity, feeding directly into the IRS’s data collection. This includes not just the big players like Coinbase and Binance, but also smaller, potentially less regulated exchanges. They’re cross-referencing this exchange data with other financial information you provide, creating a comprehensive picture of your crypto dealings. This data matching is crucial, flagging inconsistencies that trigger further investigation.

While the technology is impressive, it’s not foolproof. Privacy coins, decentralized exchanges (DEXs), and mixers can complicate tracking. However, even these methods leave a digital fingerprint that skilled investigators can often unravel. Furthermore, the ongoing development of blockchain analysis techniques means that previously “anonymous” transactions are becoming increasingly traceable. Think of it like an arms race – the privacy-enhancing technologies are constantly evolving, but so are the government’s investigative tools.

The penalties for non-compliance are severe. We’re not talking about a slap on the wrist. We’re talking about substantial fines and potential criminal charges. The IRS isn’t just interested in collecting taxes; they’re actively pursuing tax evasion related to crypto. The risks far outweigh the potential benefits of attempting to avoid reporting your crypto income. Accurate record-keeping is absolutely paramount. Consult with a tax professional experienced in cryptocurrency to ensure you’re complying with the law and minimizing your risk.

Does the SEC regulate crypto exchanges?

The SEC’s regulatory oversight of crypto exchanges is a rapidly evolving landscape. While they haven’t explicitly created a comprehensive regulatory framework specifically for crypto exchanges, their approach centers on applying existing securities laws. This means they aggressively pursue enforcement actions against platforms deemed to be offering unregistered securities. The sheer number of lawsuits filed in 2025 alone – over twenty-three – underscores their assertive stance. This focus targets not only exchanges listing unregistered securities but also the projects themselves. The SEC’s interpretation of the Howey Test plays a crucial role in determining whether a digital asset qualifies as a security, influencing which platforms and tokens fall under their jurisdiction.

Key takeaway: The lack of specific crypto exchange regulations doesn’t equate to a lack of regulation. The SEC’s actions highlight the significant risk of non-compliance for exchanges and projects failing to meet existing securities laws. This aggressive enforcement strategy creates uncertainty and necessitates careful due diligence for both exchanges and investors.

This implies: Exchanges need to rigorously vet the tokens they list, ensuring compliance with securities laws. Failure to do so leaves them vulnerable to substantial fines and legal repercussions. Investors should carefully analyze the regulatory landscape and the legal standing of projects before investing, as SEC actions can significantly impact asset valuations and trading availability.

What is the regulation on crypto trading?

India’s regulatory landscape for crypto trading underwent a significant shift in March 2025 with the inclusion of crypto assets under the Prevention of Money Laundering Act (PMLA). This means cryptocurrency exchanges and service providers are now obligated to adhere to stringent anti-money laundering (AML) regulations, a key component being Know Your Customer (KYC) procedures. This move aims to curb illicit activities within the crypto space, mirroring global trends towards greater regulatory oversight.

The Financial Intelligence Unit-India (FIU-IND) is the designated authority responsible for enforcing these regulations. This means increased scrutiny for businesses operating in the Indian crypto market. Exchanges can expect more frequent audits and potential penalties for non-compliance. KYC processes, already prevalent in many exchanges, will be further strengthened and rigorously enforced. This involves verifying user identities through documentation, potentially including address verification and source of funds checks.

While this increased regulation brings challenges, it also offers benefits. Greater regulatory clarity can attract more legitimate businesses and investors, contributing to the overall growth and stability of the Indian crypto ecosystem. It also enhances consumer protection by reducing the risk of fraud and scams.

It’s crucial for Indian crypto traders to understand and comply with these new regulations. Choosing reputable, KYC-compliant exchanges is paramount. Ignoring these regulations can lead to severe consequences, including hefty fines and potential legal action.

The evolving regulatory environment necessitates continuous monitoring of updates and guidelines issued by the FIU-IND. Staying informed is key to navigating the Indian crypto market successfully and legally.

Why is crypto compliance important?

Crypto compliance isn’t merely a set of regulations; it’s crucial for the long-term health and viability of the cryptocurrency ecosystem. It addresses several critical aspects:

Preventing illicit finance: Crypto’s pseudonymous nature makes it attractive for money laundering, terrorist financing, and other illegal activities. Compliance measures like KYC/AML (Know Your Customer/Anti-Money Laundering) protocols, transaction monitoring, and suspicious activity reporting are essential to mitigate these risks. Failure to comply exposes businesses to significant fines and reputational damage.
Protecting consumers: The volatile nature of cryptocurrencies and the prevalence of scams and fraudulent projects necessitate strong consumer protections. Compliance helps ensure transparency, fair practices, and safeguards against market manipulation. This includes clear disclosures, proper licensing, and robust dispute resolution mechanisms.
Ensuring market stability: Unregulated markets are prone to instability and crashes. Compliance fosters a more predictable and trustworthy environment, attracting institutional investors and building public confidence. This is vital for long-term growth and adoption.

Furthermore, effective compliance goes beyond simply adhering to regulations. It involves:

Proactive risk assessment: Regularly identifying and mitigating potential compliance vulnerabilities.
Robust internal controls: Implementing systems and processes to ensure compliance is consistently maintained.
Ongoing monitoring and adaptation: The regulatory landscape is constantly evolving; staying informed and adapting to changes is crucial.
Collaboration with regulators: Engaging proactively with regulatory bodies to contribute to a balanced and effective regulatory framework.

Ignoring compliance not only exposes businesses to legal and financial repercussions but also undermines the credibility and trust needed for widespread cryptocurrency adoption. A strong compliance framework is a cornerstone of a sustainable and thriving crypto industry.

What are the solutions to the problems of mining?

Mining’s sustainability challenges are significant, impacting both profitability and ESG scores. Addressing them requires a multifaceted approach beyond simply “shutting down illegal mining.” Successful remediation necessitates a comprehensive strategy incorporating:

1. Supply Chain Due Diligence: Beyond simply identifying illegal operations, proactive tracing of materials throughout the supply chain is crucial. This minimizes exposure to tainted sources and improves transparency, a growing investor demand. Blockchain technology can play a significant role here, enabling real-time tracking and verification.

2. Advanced Reclamation Techniques: Rehabilitation of mining sites is not just about restoring the land; it’s about maximizing its post-mining value. This includes exploring innovative phyto-remediation techniques and leveraging data analytics to optimize land use for agriculture or renewable energy projects. The potential for positive returns from these secondary ventures can significantly enhance project ROI.

3. Technological Innovation: Eco-friendly equipment is essential, but the focus needs to expand beyond mere efficiency. Implementing AI-powered predictive maintenance systems reduces downtime and minimizes environmental impact. Autonomous mining technologies can enhance safety and precision, decreasing waste and operational costs.

4. Community Engagement & Impact Investing: Simply ensuring communities “prosper” is insufficient. This necessitates active participation in community development programs, aligning mining operations with local needs and priorities. This proactive approach helps mitigate risk and unlocks new investment opportunities through impact bonds and ESG-focused funds.

5. Precision Mining & Resource Optimization: Lower-impact techniques go beyond surface mining. This requires advanced geological modeling and resource estimation to minimize waste rock generation. Employing selective mining techniques, coupled with in-situ leaching and other advanced extraction methods, drastically reduces the environmental footprint and enhances profitability.

What are the three effects of illegal mining?

Illegal mining is a plague, a parasitic drain on legitimate economic activity. Think of it as a rug pull on a planetary scale. Its effects are threefold, and devastatingly interconnected:

Environmental Devastation: Deforestation, soil erosion, and water pollution aren’t just pretty pictures; they represent massive capital destruction. The loss of biodiversity alone translates to a significant devaluation of future ecological services, a hidden cost rarely factored into the short-sighted profits of illegal operations. We’re talking about a systemic risk, akin to a black swan event impacting global resources.

Economic Instability: Beyond the obvious environmental damage, illegal mining undermines legitimate businesses and discourages foreign investment. It’s a race to the bottom, driving down prices and creating unfair competition, not to mention the massive loss of potential tax revenue that could fuel vital infrastructure projects. This is like holding a losing position in a highly volatile market – eventually, everyone loses.

Social Unrest: Illegal mining often fuels conflicts over land rights, leading to social instability and human rights abuses. Think of it as a highly speculative, extremely risky asset class, with extremely negative externalities. The long-term downside is astronomical and the risks severely outweigh any short-term gains. The impact on local communities is catastrophic, hindering development and perpetuating a cycle of poverty.

What are control systems in mining?

Mining control systems are the blockchain of the earthmoving industry. They provide transparent, immutable records of every operational aspect, from equipment performance to personnel allocation. This real-time data stream empowers unparalleled efficiency gains, much like a decentralized ledger optimizes transactions.

Key benefits mirror the advantages of decentralized systems:

Enhanced Transparency & Traceability: Real-time monitoring eliminates informational silos, offering a holistic view of all operations. This level of transparency enables proactive problem-solving and minimizes costly delays.
Automated Optimization: Algorithms analyze data to autonomously optimize production parameters, mimicking the efficiency of smart contracts in executing predefined rules. This leads to increased throughput and reduced waste.
Predictive Maintenance & Reduced Downtime: By analyzing sensor data, systems predict equipment failures, enabling scheduled maintenance that prevents costly unexpected downtime – much like a robust DeFi protocol anticipates and manages risks.
Improved Safety & Risk Management: Real-time monitoring of worker location and equipment status significantly improves safety protocols and risk mitigation strategies. This parallels the security features inherent in many blockchain applications.

This translates to tangible ROI improvements:

Significant reduction in operational costs through optimized resource allocation and predictive maintenance.
Increased production output and improved resource utilization leading to higher profitability.
Enhanced worker safety and reduced environmental impact due to improved monitoring and control.

Ultimately, control systems in mining are not just about efficiency; they represent a paradigm shift towards data-driven, intelligent mining operations – a decentralized, automated future for resource extraction.

Is crypto protected by the government?

No, crypto isn’t directly protected by the government in the way a bank deposit is. Think of it like the Wild West – exciting, potentially lucrative, but also inherently risky. Government regulation is largely focused on the entities handling crypto, not the crypto itself.

Regulation primarily kicks in when:

Security Laws: The sale of a particular crypto asset might be classified as the sale of a security under federal (like the Howey Test) or state laws. This opens it up to extensive SEC regulation. Knowing the difference between a utility token and a security token is crucial for investors and issuers alike. Misclassifications can be hugely expensive.
Money Transmission Laws: If you’re facilitating the exchange of crypto for fiat currency or other cryptocurrencies, you’re likely operating as a Money Services Business (MSB) under federal law (FinCEN). This requires hefty compliance, licensing, and reporting – and non-compliance is a serious legal issue.

The key takeaway: While the crypto itself isn’t directly protected, the *businesses* operating within the crypto space are subject to existing financial regulations. This means understanding these legal frameworks is paramount for both investors and those building in the crypto space. Ignoring them can lead to hefty fines, legal battles, and even prison time.

Further Considerations:

Jurisdictional Differences: Regulatory approaches to crypto vary dramatically from country to country. What’s legal in one jurisdiction might be illegal in another.
Evolving Landscape: Crypto regulation is a constantly moving target. Keeping up-to-date with changes is essential for navigating the legal landscape.
Self-Custody Responsibility: Ultimately, you are responsible for securing your own private keys. The government won’t bail you out if you lose access to your funds.