What Are the Challenges of Cross-Market Surveillance in a Fragmented Crypto Ecosystem?

The challenges of cross-market surveillance in crypto stem from the ecosystem's fragmentation: numerous exchanges (CEXs and DEXs), different regulatory jurisdictions, and the pseudonymous nature of DeFi. It is difficult to link trading activity across multiple, unregulated platforms and identify the beneficial owner behind a wallet address.

The lack of a central reporting authority and the different data standards across platforms make it computationally and legally complex to track manipulative schemes that span spot, futures, and options markets.