OKEx pushing for global cryptocurrency exchange standards through self-regulated organization 🚨 This article is 5 years old...
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OKEx pushing for global cryptocurrency exchange standards through self-regulated organization
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Updated: Nov. 7, 2019 at 6:03 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
OKEx launched an initiative to develop a global compliance standard for cryptocurrency exchanges. This will be done through a self-regulated organization whose members will work together to define and adopt these standards.
OKEx leads the way for global exchange standards
The lack of worldwide standards for regulating cryptocurrency exchanges has been a persistent problem in the industry. The global and decentralized nature of crypto exchanges requires each company to comply with a tangle of local and international regulations, often losing out on market opportunities due to strict or unclear laws.
However, this could soon change as a consortium of exchanges is set to work on introducing global standards that would help standardize regulations.
OKEx, a leading crypto spot and futures trading platform originally based out of Hong Kong and later re-incorporated in Malta, announced that it is launching an initiative to develop global compliance standards for crypto exchanges. To do so the company is creating another self-regulating organization (SRO).
The organization will be structured in a similar way to the World Federation of Stock Exchanges, FINRA in the United States, and the World Economic Forum, the company said, and will engage exchanges and market participants in the global crypto-trading community.
Andy Cheung, head of operations for OKEx, said that regulations by jurisdiction are not enough to promote digital asset adoption globally.
“The only way for exchanges to grow and deliver impact is by joining together to develop practices and policies that will set a global standard and adapt to regional regulatory frameworks,” he said in the release.
A new age for worldwide regulation
OKEx’s new initiative was first shared in Malta, during DELTA Summit 2019. Enzo Villani, OKEx’s Head of Strategy and Innovation and former NASDAQ executive, announced the news, saying that it will be an independent, membership-based organization that is neutral and open to exchanges of all sizes and jurisdictions.
All prospective members will have to clarify their operational practices and cooperate with governments to encourage innovation in this sector. The SRO will focus on establishing standards for market-making, listing and delisting digital assets, and other items critical to the growth of the entire industry, OKEx said in the release.
This initiative seems to be riding on the wave of crypto companies taking matters into their own hands. Earlier this week, Japanese financial services giant Monex Group announced that it had established an association that will work to develop regulations regarding security token offerings in the country.
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OKX is a world-leading digital asset exchange, providing advanced financial services to global traders by using blockchain technology.