New York Attorney General Says Crypto Exchanges Are at Early Maturation Stages
Cryptocurrency Exchanges Would Be Much More Similar to Traditional Financial Platforms
In the future, cryptocurrency exchanges could become much more similar to traditional financial platforms in the financial world. The Financial Times reported that the crypto companies are moving towards becoming similar to traditional financial entities.
The FT explains that the cryptocurrency market is just at an early stage in its maturation and that ti will take some time until the market will be completely developed. In order to have such a conclusion, the FT cited the findings of a report uploaded by the Office of the Attorney General to the state of New York (OAG).
According to the OAG, cryptocurrency exchanges have different implementations and functions. Additionally, the OAG wanted to learn about the standards applied to exchanges and other crypto platforms related to jurisdictions, fees, acceptance policies or fiat currency, among other topics.
At the moment, the highest priority concerns are related to ‘abusing trading activity.’ Other important topics and ‘high priority’ concerns are related to conflicts of interest between platforms and users, security of funds and market manipulation.
For example, trading platforms, money-changers, proprietary traders and other investors could foster potential conflicts of interest. Additionally, the lack of KYC procedures could also end up in abusing trading practices.
At the moment, the refreshed exchange acquire by Circle, Poloniex, is trying to adhere to all of the OAG’s recommendations. This could also be related to the connections Circle has with the traditional and mainstream financial world.
The Bakkt platform that would soon be released to the market, is going to use traditional financial tools in order for institutions to enter the cryptocurrency world. This would allow several wealthy investors and organizations to place their funds in the cryptocurrency world knowing that they are using a platform specifically designed for traditional investors.
However, several desires and recommendations made by the OAG do not want to be embraced by several users. We are talking about the prevention of Virtual proxy Networks and Know-Your-Customer (KYC) procedures.
In the future, it is clear that cryptocurrency exchanges and trading platforms will adopt several features currently present in traditional financial companies and platforms.