Exchanges federation touts crypto trading regulation, integration with TradFi
The World Federation of Exchanges (WFE) sees the capacity for crypto-asset trading platforms (CTPs) to play a bigger function in the “genuine” economy and society at big. It had some blunt observations about CTPs and tips for regulators in a paper launched Sept. 28.” CTPs should welcome a degree of regulation as a mean [s] to reinforce the appeal of their markets,” the WFE composed. It suggested six concepts for regulating CTPs. The very first of those was to segregate functions to prevent trading against their customers, a complaint that United States Securities and Exchange Commission chairman Gary Gensler often voices. Up until they meet those requirements, CTPs ought to not call themselves exchanges, the trade association stated. Principles for exchanges to live by, according to the WFE. Source: WFEThe WFE was worried about the integration of distributed ledger innovation (DLT) into the TradFi exchanges it represents. Regulators need to think about the shared benefits of that integration, it said:” If you make it difficult for regulated organizations to run services in crypto-assets, you effectively chase this service out of the institutions who know how to run it effectively, and into the shadows, where it might be run by brand-new entrants with minimal experience.” FTX experienced a “classic monetary services collapse” that was not related to the crypto market itself, the WFE said.Related: 40% of crypto trading platforms are decentralized: World Federation of ExchangesIt had much to state about decentralized finance (DeFi):” DeFi appears to run differently [from TradFi and CeFi] but the distinctions are not quite as stark as they seem. […] A platform where sellers and purchasers satisfy is, by its very nature, a main entity.” The Ethereum Merge– its shift from proof-of-work to proof-of-stake agreement– “was largely driven by the centralised group at the Ethereum foundation.” Guideline could be used on the level of DApps, not the procedure, the WFE recommended. World Federation of Exchanges proposes 6 key concepts for crypto trading infrastructure – “These six key concepts need to be a list for any CTPs that are major about satisfying the standards anticipated of a credible operator of markets. Observing the standards will not … pic.twitter.com/drYRne2bZL— The Industry Spread (@industryspread) September 28, 2023
The WFE applauded Financial Action Task Force efforts to use Know Your Customer policies, the so-called travel rule, to crypto and backed the IOSCO Principles for Other and secondary Markets to raise standards on crypto markets.Magazine: Deposit threat: What do crypto exchanges actually finish with your money?
The World Federation of Exchanges (WFE) sees the capacity for crypto-asset trading platforms (CTPs) to play a bigger function in the “genuine” economy and society at big. Principles for exchanges to live by, according to the WFE. Source: WFEThe WFE was concerned about the integration of distributed journal innovation (DLT) into the TradFi exchanges it represents. Policy could be used on the level of DApps, not the protocol, the WFE suggested.