Does anyone else agree that it's way too easy to open an exchange nowadays, you just assemble a team and buy some trading platform software from a third party and set up your site, compliance be damned. And then some of them do things like listing scamcoins that can be predicted to become worthless, ripping off investors. If a stock were to do this, their owners would go to jail.
And then other exchanges blatantly misreport their trading volume as much higher than it actually is. If a regulated forex platform would to do this, they would be heavily fined.
Sure forex has their own share of scam platforms but in my opinion it is way too easy to set up an crypto exchange without worrying about the legal aspects. There should be more scrutiny and regulation around exchanges.
This is not as difficult to guess, exchanges can get away with it because many users decide to turn a blind eye, if you want to use one of the most reputable exchanges out there you're probably going to have to go through know your customer policies and even if you don't have to go through those policies you will not have access to all kind of exotic coins that are out there.
Traders and investors decide to ignore the fake volume because they prefer to avoid know your customer policies and to trade coins that we know will crash in a matter of weeks or months with the hope of being one of the few that earn money out of those coins, as you can see the old model of supply and demand is at work, so if there was not a demand for exchanges like that then they will not exist.