In its bid to make crypto exchanges self-regulated, OKEx has revealed its plans of establishing a “Self-Regulated Organization” (SRO). According to plans, the organization will be responsible for standardizing exchange practices and policies.
OKEx Introduces Crypto Exchange SRO At Malta Blockchain Summit
This news comes following OKEx announcement at DELTA Summit in Malta. The announcement was aired on the first day of the blockchain event when OKEx disclosed the initiative.
As per a press release, OKEx encourages exchanges and other market players in the global crypto-trading ecosystem to be the founding members of this initiative, which shares many similarities to the World Federation of Stock Exchanges, United States’ FINRA, and the World Economic Forum. According to Andy Cheung, COO of OKEx,
“Cryptocurrencies are global and decentralized, and the industry remains nascent, thus regulations by jurisdiction are not enough,” said Andy Cheung, Head of Operations for OKEx. “The only way for exchanges to grow and deliver impact is by joining together to develop practices and policies that will set a global standard and adapt to regional regulatory frameworks.”
OKEx Invites Other Crypto Exchanges To Be Part Of The Initiative
As the organization is open to exchanges of varying sizes and from all jurisdictions, the initiative will be a membership-based organization and will be independent. It will serve as an additional regulatory body to already existing traditional financial regulators. Also, the SRO Member exchanges will cooperate to decide and adopt regulatory measures with the objective of promoting digital asset adoption globally, educate governments and regulators, and develop standards and criteria for trading, listings, and reporting.
OKEx was recently involved in a tangle with Blockchain Transparency Institute (BTI) on issues related to wash trading and reporting fake trading volumes. The exchange’s COO, Andy Cheung had claimed that the report was false and had demanded an apology from the institute.
Andy Cheung maintained that the methodology used to arrive at such a report was questionable as no details about how they had arrived at the figures involved were revealed. He further alleged BTI’s website did not seem very transparent.
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