What Is the Primary Risk Associated with Trading in a Dark Pool Compared to a Regulated Exchange?

The primary risk is often a lack of transparency regarding the order book and the matching process. Participants cannot see the full depth of the market or who their counterparty is, which can lead to concerns about potential conflicts of interest or unfair order priority practices by the dark pool operator.

Furthermore, the regulatory oversight of some crypto dark pools may be less stringent than that of fully regulated public exchanges.