Topic: [2019-08-14] Regulating Crypto Exchanges: Mind The Gaps (Read 227 times)
Only 14, are you sure? In Japan alone there are if I remember correctly, more than 20 exchanges that are fully compliant with the Japanese government's regulations. In fact, if you are operating there with an office then you have a license, and the only way to get a license with Japan is to apply and get approval.
And yet Japan is one of the world capitals of exchange hacks. The worst, Coincheck, wasn't regulated but others have been. I think people would be more accepting of regulation if it came with some cast iron security practices but the more secure places like Coinbase have developed their set up entirely voluntarily.
What we've seen in general is that exchange operators aren't competent enough and regulators aren't competent enough either. They all need to get together.
I wonder what the licensing process for an exchange would be like.
Nowadays exchanges do not disclose their profits, the number of staff that has to allow them to offer a high quality service, we do not know where is the physical office of many exchanges, we do not know how exchanges protect our documents, we do not know who are the owners of many exchanges.
I believe that if governments regulate exchanges then these points that I mentioned will be the biggest concern that governments will take into consideration.
But here comes another question, if governments start a campaign to regulate exchanges, then it won't be long before wallets are the next target of governments.
Nowadays exchanges do not disclose their profits, the number of staff that has to allow them to offer a high quality service, we do not know where is the physical office of many exchanges, we do not know how exchanges protect our documents, we do not know who are the owners of many exchanges.
I believe that if governments regulate exchanges then these points that I mentioned will be the biggest concern that governments will take into consideration.
But here comes another question, if governments start a campaign to regulate exchanges, then it won't be long before wallets are the next target of governments.
This is going to change very soon, because we are seeing a trend in all countries where the regulators are catching up to the changes that are needed in legislation to cover Crypto currencies.
"At a conference in Osaka, Japan, on June 28 and 29, 2019, the leaders of the G20 economic bloc formally announced their support of the Financial Action Task Force’s (FATF) cryptocurrency guidelines as laid out in late June.
The FATF is an international regulatory organization with the set task of making formal policy recommendations to various nations and their economic regulators." - Source : https://bitcoinmagazine.com/articles/g20-supports-fatf-crypto-recommendations
The G20 was attended by representatives of the 20 largest world economies, so most of the important countries will regulate Bitcoin based on these guidelines.
"At a conference in Osaka, Japan, on June 28 and 29, 2019, the leaders of the G20 economic bloc formally announced their support of the Financial Action Task Force’s (FATF) cryptocurrency guidelines as laid out in late June.
The FATF is an international regulatory organization with the set task of making formal policy recommendations to various nations and their economic regulators." - Source : https://bitcoinmagazine.com/articles/g20-supports-fatf-crypto-recommendations
The G20 was attended by representatives of the 20 largest world economies, so most of the important countries will regulate Bitcoin based on these guidelines.
Only 14, are you sure? In Japan alone there are if I remember correctly, more than 20 exchanges that are fully compliant with the Japanese government's regulations. In fact, if you are operating there with an office then you have a license, and the only way to get a license with Japan is to apply and get approval.
It is 14 percent, not just 14 pieces. Anyway, I am not so sure if I have to believe this figure but coming from Coinfirm which I believe a very reliable source maybe there can be some stories we don't know fully as to how this whole thing happened especially when we assumed that many governments right now are requiring full compliance with the law when it comes to the business of cryptocurrency exchange. At any rate, compliance with the law does not guarantee that an exchange will not be experiencing problems big and small when it comes to security but this can help in pinpointing the very people behind the exchange so we know whom to prosecute in case something can go very wrong.
Good catch, but that's still only about 30 exchanges. They have to properly define regulated exchange first.
If we go by the logical assumption that licenced exchanges in recognised jurisdictions are regulatory compliant and, therefore, regulated, then that's 100% of all exchanges in jurisdictions where crypto exchange licences are issued: that's at least in Japan, South Korea, Thailand, and then we've got all the various European jurisdictions including the EEA and EU itself.
That means all Estonian crypto exchanges, all those registered within Malta, San Marino, Gibraltar etc... hell, even Binance wanted to fund/invest money into Bermuda just so Binance would get compliant and regulated there:
Source: NY Times, Bermuda
Only 14, are you sure? In Japan alone there are if I remember correctly, more than 20 exchanges that are fully compliant with the Japanese government's regulations. In fact, if you are operating there with an office then you have a license, and the only way to get a license with Japan is to apply and get approval.
It is 14 percent, not just 14 pieces. Anyway, I am not so sure if I have to believe this figure but coming from Coinfirm which I believe a very reliable source maybe there can be some stories we don't know fully as to how this whole thing happened especially when we assumed that many governments right now are requiring full compliance with the law when it comes to the business of cryptocurrency exchange. At any rate, compliance with the law does not guarantee that an exchange will not be experiencing problems big and small when it comes to security but this can help in pinpointing the very people behind the exchange so we know whom to prosecute in case something can go very wrong.
Only 14, are you sure? In Japan alone there are if I remember correctly, more than 20 exchanges that are fully compliant with the Japanese government's regulations. In fact, if you are operating there with an office then you have a license, and the only way to get a license with Japan is to apply and get approval.
Coinfirm - recently published (the full report is available here -> https://coinfirm-prod.objects.frb.io/assets/Coinfirm_Exchange_Report_March_2019_Public.pdf) the results of a survey that showed only 14 percent of 216 global cryptocurrency exchanges are licensed by regulators. The low coverage may not surprise anyone when considering the frequency of thefts, frauds and market manipulations that crypto exchanges in many jurisdictions disclose publicly.
Source: https://coinfirm-prod.objects.frb.io/assets/Coinfirm_Exchange_Report_March_2019_Public.pdf
The statistic partly reflects the fact that regulators and supervisory bodies around the world are still getting to grips with how to regulate cryptocurrencies (assets) and associated financial intermediaries. They face a number of challenges in their task:
-> Leveraging financial innovation while mitigating risks
-> Status of cryptocurrencies unclear
-> Fragmentation of U.S. regulatory system
-> Financial technology innovation
Do you think that more exchanges will implement regulations to be safer?
Full article you can find here
-> https://www.forbes.com/sites/gideonpell/2019/08/14/regulating-crypto-exchanges-mind-the-gaps/
Coinfirm AMLT also rewards cryptocurrency community for reporting dangerous addresses
-> https://amlt.coinfirm.com/
The latest exchange to integrate AMLT token is Shortex, you can get AMLT on Shortex here
-> https://api.shortex.net/trading/amlteth
Source: https://coinfirm-prod.objects.frb.io/assets/Coinfirm_Exchange_Report_March_2019_Public.pdf
The statistic partly reflects the fact that regulators and supervisory bodies around the world are still getting to grips with how to regulate cryptocurrencies (assets) and associated financial intermediaries. They face a number of challenges in their task:
-> Leveraging financial innovation while mitigating risks
-> Status of cryptocurrencies unclear
-> Fragmentation of U.S. regulatory system
-> Financial technology innovation
Do you think that more exchanges will implement regulations to be safer?
Full article you can find here
-> https://www.forbes.com/sites/gideonpell/2019/08/14/regulating-crypto-exchanges-mind-the-gaps/
Coinfirm AMLT also rewards cryptocurrency community for reporting dangerous addresses
-> https://amlt.coinfirm.com/
The latest exchange to integrate AMLT token is Shortex, you can get AMLT on Shortex here
-> https://api.shortex.net/trading/amlteth
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