The cryptocurrency market is going through a shift. At an increasing pace, the countries around the world are formulating regulations involving the registration of crypto exchanges and further compliance with KYC/AML measures.
Authorities make a move: Introducing regulations for crypto exchanges
Recently, Australia announced a clear set of rules for the crypto exchanges, making their economy favorable to these operators. AUSTRAC provides you with a detailed and simple form that takes you through the entire process. Though Japan has been tough on its domestic exchanges, it is working towards having detailed guidelines with customer protection as its primary objective.
Regulatory authorities all over the world have been developing regulations and working towards having the crypto exchanges registered with them and comply with the laid rules.
There is certainly a push from the authorities towards the exchange operators. However, there is no pull and push situation in this scenario. The cryptocurrency exchanges are not pulling from the government, rather there seems to be a competition to get registered amongst the exchanges.
Countermove: Crypto exchanges moving to regulated markets
To start with, one of the biggest cryptocurrency exchanges, Coinbase is reportedly seeking to become a regulated trading platform and brokerage firm. The exchange is already in talks with the US SEC for getting the license which means the government bodies would get an unrestricted authority to access the transaction records.
Last month, Binance moved to the Malta which is working towards legitimizing the sector while introducing the required regulations as commented by the President of the country: “They are saying they are coming because Malta is ready to regulate us, and we are bringing the consumer the peace of mind that there are people regulating this system.”
OKEx, another major cryptocurrency exchange expressed its plan to shift its operations to Malta with:
“We look forward to working with the Malta government as it is forward thinking and shares many of our same values: the most important of which are protection of traders and the general public, compliance with Anti Money Laundering and Know Your Customer standards, and recognition of the innovation and importance of continued development in the Blockchain ecosystem.”
In Japan, as FSA makes a tough move on the domestic crypto exchanges, the small operators are seeking to get out of the market, while big players like bitFlyer are taking the steps to register with the authorities and comply with the regulations put forth by them.
The big exchanges in the cryptocurrency industry are inclined towards taking the regulatory step which is in a way essential for these operators in order to not only conduct their business as a trading platform but also to maintain the liquidity.
Why do you think crypto exchanges are eagerly turning towards regulated economies? Do you think it is the right step? Share your views with us!