Why 2020 is an important year for cryptocurrency exchange regulation

2020-2-27 18:30

Cryptocurrency exchanges represent one of the most diverse service offerings within the crypto industry.

You only have to stack a handful of exchanges up, side by side, to see the differences between them. These differences can be found in a multitude of areas.  Some differences relate to the actual user interface (UX) experience of the platform and how users interact with the services. Other differences can be found in the technical side of the trading offered by the exchange. This list is almost endless.

In a market that is now so big, this diversity allows crypto users to move to whichever exchange best suits their needs — a real win for those who are trading in the community.

To date, crypto exchanges have had a fairly easy life with respect to regulation and the amount of paperwork they have to do. Considering the amount of cash that flows through some exchanges, it is quite astonishing that so far they have had minimal regulation. In hindsight, this might not be such a great thing.

Regardless of your thoughts on the balance between privacy/freedom and control/monitoring, the simple fact is that most countries do not allow free flow of assets of any kind. Monitoring them kills factors such as financing terrorism and money laundering from crime. Two things which, in the early days of Bitcoin, gave the whole industry a bad name. One which we are still trying to recover from.

In order to counter this, 2019 saw a raft of new laws passed in various international jurisdictions. Most of which, aimed at exchanges. Essentially, there has been no headway into actually legislating cryptocurrencies themselves. However, moving forward, the trading will be much more regulated.

To help you understand the major changes, let’s take a brief look at the new major laws coming into play over 2020.

Hong Kong

Hong Kong has finally set its mind on the trading of cryptocurrency. As of now, companies that are looking to offer trading services of cryptocurrencies will have to register for a Money Service License within Hong Kong. This is the same license that Foreign Exchange companies will use. It carries reporting requirements that are slightly easier than being a usual financial services firm.

Singapore

Singapore was the original birthplace of the exchange. Consequently, many many exchanges decided to set up there and conduct business. Singapore now requires all exchanges to register with The Monetary Authority of Singapore (MAS). MAS is a full financial oversight body that will inspect every element of the company including business operations and transactions.

European Union

The EU has now placed registration requirements on all exchanges operating within the Union. Although countries such as Malta and Estonia already had these in place, all member states are now required to have cryptocurrency exchanges register within their respective country. One registration will work for all member states (as is common with all financial services). The obligation is only on the collection of data of users of the exchanges. Not information on trades. This registration process will vary from state to state.

The United Kingdom

The United Kingdom was in the EU long enough to be caught by the new law but will be out in time to decide how they set it up. Consequently, the Financial Conduct Authority (FCA) has now created a special type of Crypto License. This license places a requirement on companies that operate in the crypto space and facilitate trades to register with the organization. This includes companies outside of exchanges.

All of these new laws are designed to ensure that companies who operate from “onshore” locations are taking the necessary steps to protect the flow of money in and out of the country. For those exchanges that are looking to promote a more “decentralized” or “fluid” approach to trading will more than likely have to move to an offshore location in order to continue doing business.

The post Why 2020 is an important year for cryptocurrency exchange regulation appeared first on CryptoSlate.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Global Cryptocurrency (GCC) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0018311 (-100%)

cryptocurrency exchanges side stack only industry handful

Источник: cryptoslate.com

cryptocurrency exchanges → Результатов: 126


CAIZcoin: the debut of pioneering Islamic compliant cryptocurrency on global exchanges is here

The eagerly anticipated global debut of CAIZcoin, a cryptocurrency based in the EU that adheres to Islamic financial principles, is just around the corner. With more than 30 exchanges set to list CAIZThe post CAIZcoin: the debut of pioneering Islamic compliant cryptocurrency on global exchanges is here appeared first on AMBCrypto.

2023-8-21 11:00


Фото:

Impressive Feat: Chainlink Overtakes Bitcoin To Become The Most Traded Cryptocurrency On Major Exchanges

LINK’s winning streak continues. The token which is now ranked as the sixth-biggest by market capitalization has registered a near-constant upsurge over the past couple of weeks. Following this meteoric rise, LINK’s trading volume has surpassed that of the benchmark cryptocurrency on major cryptocurrency exchanges.

2020-8-10 16:32


Фото:

Cryptocurrency Exchanges Resort to Marketing Measures to Revive Falling Volume

Large cryptocurrency exchanges, including Binance and BitMex, have recently increased their referral fee in a bid to bring back customers and stage a revival in exchange volumes. According to sources from Bloomberg, exchange volumes have fallen by nearly 40 percent over the year, and exchanges are desperate to stage a resurgence as their revenue isRead MoreRead More.

2019-9-26 20:00


Фото:

Moonday Morning: Bitcoin dev ordered to prove Craig Wright isn’t Satoshi

It’s Monday which means it’s Moonday Morning and time to catch up with the top news from over the weekend. Let’s get to it. 1. Canadian financial regulators are learning from the QuadrigaCX debacle and are taking action to begin regulating cryptocurrency exchanges to mitigate the risks associated with virtual currency exchanges.

2019-3-18 12:36


Фото:

These Flaws Make Cryptocurrency Exchanges Susceptible to Attacks

It is a proven fact that the blockchain has an impressive 99. 64 percent reliability. However, the same can’t be said of cryptocurrency exchanges. Amidst that backdrop, Sameer Dixit, the Senior Director of Security Consulting at Spirent Communications, has identified some characteristic flaws of crypto exchanges which must be tackled to shield the over $350 billion cryptocurrency industry from more heists.

2018-7-20 07:00


дальше еще 77 новостей →

Партнеры Currencies.ru

Реклама на Currencies.ru

Самое свежее на Currencies.ru

Genesis wins court nod to return $3 billion to creditors

Court approves Genesis Global's plan to distribute $3 billion to creditors, rejecting Digital Currency Group's objections. The post Genesis wins court nod to return $3 billion to creditors appeared first on Crypto Briefing.

Coinbase expects 30% to 40% chance of spot ETH ETF approval by month-end

Crypto exchange Coinbase believes the odds of the SEC approving spot Ethereum ETFs by the end of the month stand between 30% to 40%. In a May 15 report, Coinbase Institutional Research Analyst David Han asserted that the main factor that led the SEC to approve spot Bitcoin ETFs — the correlation between CME futures […] The post Coinbase expects 30% to 40% chance of spot ETH ETF approval by month-end appeared first on CryptoSlate.

Bitcoin breaks through $67,000

Quick Take Bitcoin went above the $67,000 mark, nearly hitting $67,500 — its highest level since April 13. The remarkable rally has triggered a wave of liquidations within the digital asset ecosystem over the past 24 hours.