When you use an unregulated crypto exchange, a cryptocurrency trading platform that operates without government oversight or licensing. Also known as offshore exchange, it might look tempting—no KYC, no fees, instant deposits. But behind the smooth interface, you’re trading with no safety net. Unlike platforms like Coinbase or Kraken, these sites don’t answer to any authority. No one is checking if they’re hiding your funds, laundering money, or just shutting down next week.
That’s why so many users end up with frozen accounts, fake airdrops, or vanished platforms like Nanex, a Nano-focused exchange that disappeared after zero trading volume, or Coinlocally, a zero-fee platform where users report lost funds and broken support. These aren’t outliers—they’re the norm. Unregulated exchanges often rely on hype, fake volume, and phantom customer service to lure people in. And when the money runs out, so does the platform.
The risk isn’t just about losing money. Many of these platforms are linked to North Korean IT workers, who use unregulated exchanges to launder billions through fake remote jobs and stablecoins. Others are pure scams, like the ART Campaign airdrop, a fake token distribution that never existed, or the IguVerse NFT airdrop, promised but never delivered. These aren’t bugs—they’re features of a system designed to exploit trust, not build it.
Regulation isn’t about limiting freedom. It’s about accountability. Countries like Singapore and Brazil now require exchanges to meet strict licensing rules, AML checks, and capital requirements. That’s why platforms operating there have real support teams, insurance, and audit trails. If a site doesn’t say where it’s based, or hides behind a VPN and a .xyz domain, treat it like a cash-only store in a dark alley.
What you’ll find here aren’t just reviews. These are post-mortems. Real stories of platforms that vanished, airdrops that were lies, and wallets that emptied overnight. You’ll see exactly how these scams work, who’s behind them, and how to avoid becoming the next headline. No fluff. No hype. Just the facts—so you don’t lose your money to a ghost site.
Coinlocally offers zero fees and high yields, but lacks regulation, has broken apps, and poor support. Learn why this exchange is high-risk and what safer alternatives exist.