The Crypto-asset exchanges will gradually look like the trading platform of the traditional financial world, after London canvas after the financial paper financial Times (FT), newborn crypto industry and people coming from traditional finance.
Citing the findings of a report by the Office of the Attorney General of the State of New York (OAG), the FT article stated that “the crypto market is only in the initial stages of maturity”.
The OAG report has a picture of the crypto-asset exchanges that come to catch up with the new frontier, and their implementation and work are widespread and the OAG recognizes “integrity” of related platforms.
Soliciting responses from some of the biggest virtual currency trading platforms, the OAG were interested to learn the platforms’ standards regarding such topics as jurisdiction, fees, acceptance policies of fiat currency, security and insurance, employees’ trading practices, algorithmic/API trading high frequency trading (more commonly known in the crypto industry as “bots”), and Know-Your-Customer (KYC) standards.
Potential Conflicts of Interest
In the platforms and their users, the protection of money, and the prevention of “abusive trading activity” are high priorities addressed in the conflict report of interest.
Many roles played by business platforms – Exchange, Broker, Money changers, proprietary merchants (operators operating on behalf of business platforms for profit from business platforms), and issuing proprietary digital tokens, all Together – it is possible to potentially promote conflict of interest; And the lack of industry-standard KYC has been cited as breeding of abusive trade practices.
Circle’s Poloniex almost seemed to come out at the top to follow all the OAG recommendations, which are probably unsatisfactory for the deep-rooted relationship of the mainstream financial world circle.
It is worth noting that many of the OAG’s wishes, such as the prevention of virtual proxy networks and the identity of the users, are actually the types of commitments, cryptocurrency, and the crypto property is intended to avoid many users in the world.
The FT piece comes after a damning report regarding foul play on crypto asset trading platforms — especially BitForex — which detailed wash trading and fake trade volume