What Is the Potential Regulatory Risk Associated with Large Cryptocurrency Mining Pools?
Large mining pools, due to their concentration of hashrate, could be viewed by regulators as centralized entities with significant control over the network. This centralization could lead to regulatory pressure, such as requirements for Know Your Customer (KYC) or Anti-Money Laundering (AML) compliance on the pool operator, or even outright bans in certain jurisdictions, which could destabilize the network's security.