How Does the Unregulated Nature of Some Crypto Exchanges Amplify the Risks of Iceberg Order Detection?

Unregulated crypto exchanges often lack robust surveillance systems to prevent manipulative practices like front-running. This means if an iceberg order is detected, there is little to stop other traders or even the exchange itself from trading against it.

Furthermore, these exchanges may have opaque rules about order matching and data dissemination, potentially leaking information about hidden orders to preferential clients. The absence of a regulatory body also means there is no recourse for traders who fall victim to such predatory strategies, amplifying the financial risk of execution.