OKEx announced that it is forming a Self-Regulated Organization (SRO) aimed at standardizing crypto exchange practices and policies.
The announcement was made on Oct 3rd while stating that OKEx is already engaging with other market participants and exchanges to form their SRO.
Global Self Regulatory Body for Crypto Exchanges
OKEx’s Self-Regulated Organisation will be similar to the:
FINRA in the United States
The announcement was made on the first day of the DELTA Summit in Malta.
The member exchanges will supposedly ‘collaborate to define and comply with standards promoting digital asset adoption, government and regulator education, and develop metrics and criteria for trading, listings, and reporting.’
Head of Operations for OKEx Andy Cheung commented on the development:
“Cryptocurrencies are global and decentralized, and the industry remains nascent, thus regulations by jurisdiction are not enough. […] 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.”
Government collaboration
Head of International Strategy and Innovation at OKEx Enzo Villani said that the firm is already in talks with other trading platforms:
“We are in discussions with other exchanges and market participants to join us in formalizing a global SRO.”
Enzo Villani believes that crypto exchanges should fight to find an equal and fair field to compete in while they are competing. He added that compliance is rather difficult in the industry.
Villani also noted that he believes that while they are competing, crypto exchanges should fight to find an equal and fair field to compete in. He also explained that compliance is rather difficult in the industry as it currently stands:
“You’re gonna have the competitive matrix — it’s gonna be there all the time — you’ll compete on price, you’ll compete on speed, you’ll compete on listings, but you have to have a sandbox where everybody can play. And fortunately we have a sandbox already set up. What’s unfortunate is that we are trying to go regulator-to-regulator, instead of saying let’s just set some high level rules that fit into all these regulations at some level.”
In February, Brian Quintenz, United States Commodity and Futures Trading Commission commissioner suggested that participants in the cryptocurrency industry should create a self-regulatory structure.
Source: Cointelegraph.com| Image:cryptoslate.com