For digital asset exchanges, regulation will be good for business

themonkii

Community Manager
Staff member
Jun 14, 2018
241
497
93
#1
Digital asset exchanges that use blockchain technology are looking at regulation as the next step to market growth. There are a number of exchanges that are developing their technologies to enable traditional assets such as bonds, venture capital, real estate and art to be tokenized and traded in a way that is compliant with local securities regulations.

Exchanges–no longer the wild west of crypto

We have come a long way from when the first exchange was founded in early 2010 to match buyers and sellers of Bitcoin. There are currently just under 230 cryptocurrency exchanges according to CoinMarketCap, and with millions of dollars traded daily, they play a crucial role by providing secondary market liquidity in the cryptocurrency economy.

A number of exchanges are focusing on the regulated securities token market, and we are beginning to see traditional broker-dealers working with technology providers to deliver regulated exchanges that build in systems to deliver the required security procedures, investor protection and internal controls in order to satisfy regulatory requirements.

Regulation good for business

Regulatory compliance is a positive development in the crypto economy and is particularly relevant for the process of tokenization of assets in order to create a pathway to liquidity. The surge in popularity of initial coin offerings (ICOs) that we saw in 2017 and 2018 raised the question of exactly whether tokens constituted securities.

Continue Reading
 

themonkii

Community Manager
Staff member
Jun 14, 2018
241
497
93
#2
What do you guys think? Will regulation play a positive role in the crypto market?

I am of the mind that yes, it will. I think that Wall St has been pretty clear that they wont be pumping in institutional money until a more clear framework has been established.