I know people who are still dubious about the cryptocurrency sector because they worry about losing their money to scams or security breaches, which has been a typical occurrence in this market.
Since the majority of users appear to have welcomed the requirement for required KYC, I believe the focus should now be on enhancing exchange security.
I am aware that KYC may reduce fraudulent activity, however dealing with hacking and security exploitation issues will need investing in the strengthening of security. Adoption could happen quickly with sufficient protection because safety will be assured.
The latest Houbi attack, which resulted in the theft of roughly $8 million worth of Ethereum, and a few other security exploitations of a similar nature on other trading platforms in the past don't bode well for the sector, which calls for the prioritizing of security.
https://cointelegraph.com/news/huobi-global-crypto-exchange-hacked-reportEven though there are still very few trading platforms that have never experienced security exploitation, the recent incident with Houbi should serve as a reminder for everyone to remainattentive and prioritize their security.
Exchanges are meant for trading, and likewise, wallet for hodling coins, but just that most times people mistake what is meant to be done on an wallet on an exchange because of the presence of the wallet feature, which is why I think majority keep falling victims whenever there is a hack or security breach, which is ought not to be that way. So in regards to this, I think while we keep letting exchange know the importance while it's good to have an improved security, let's not forget to educate people also on the reason why it's very much important not to hold much funds on an exchange but a very secured non-custodial wallet where they can have access to the private key to their funds.