Launching a crypto exchange from scratch can look exciting from the outside, but entrepreneurs quickly realize it’s a complex, high-risk business. Here are the biggest challenges, explained clearly and practically:Regulatory & Compliance UncertaintyCrypto laws vary by country and change often. Entrepreneurs must handle licenses, KYC/AML, KYT, and data protection rules. One wrong move can lead to fines, shutdowns, or loss of user trust.Security & Hacking RisksExchanges are prime targets for hackers. Building strong wallet security, cold storage, encryption, DDoS protection, and regular audits is expensive and technically demanding. A single breach can destroy the brand overnight.Liquidity ManagementNo liquidity = no traders. New exchanges struggle to attract buyers and sellers, manage order books, and keep spreads tight. Without proper liquidity strategies, users leave fast.High Development & Infrastructure CostsBuilding a trading engine, matching system, wallets, APIs, and admin panels from scratch takes time, skilled developers, and serious capital. Ongoing server, cloud, and maintenance costs add up quickly.Trust & User AcquisitionPeople don’t trust new exchanges easily. Competing with established platforms means proving security, reliability, and transparency while spending heavily on marketing and partnerships.Scalability & PerformanceAs users grow, the platform must handle high traffic, high TPS, and peak trading volumes without downtime. Poor performance during market volatility can permanently damage reputation.Banking & Payment IntegrationsFinding banks and payment gateways willing to work with crypto businesses is still a major hurdle, especially for fiat on-ramps and off-ramps.Ongoing Operations & SupportRunning an exchange isn’t just about launching. 24/7 customer support, monitoring, updates, compliance reporting, and risk management are continuous challenges.Final ThoughtThe biggest challenge isn’t just technology,it’s balancing security, compliance, liquidity, and trust at the same time. That’s why many entrepreneurs now choose white-label crypto exchange solutions to reduce risk, cost, and time to market.If you want, I can also: