OpenRelay Decentralized Crypto Exchange to Apply New Regulatory Policies Following SEC’s EtherDelta Rulings
In October of 2017, Radar Relay had pointed out on some expected changes in their regulatory strategy. Since then, a lot has happened in that, they have managed to offer its service to users in more than a hundred and fifty countries. Also, they have successfully raised two financing rounds and increased its staff to just about thirty members.}
We last wrote about our regulatory strategy in October of 2017. A lot has happened since then, it's time for an update. https://t.co/VO23vaVYlL
— Radar Relay (@RadarRelay) November 13, 2018
Recently, the SEC (Securities and Exchange Commission) took disciplinary measures against the founder of ErherDelta for carrying out securities exchange that was unregistered.
What Is To Be Expected?
In line with the company’s mission of a universal, apparent, and a participating financial system, Relay illuminates on how they will be steering a multifaceted and ever-changing regulatory environment. To date, the regulatory guidelines have been voluntary. However, with immediate effect, each token trader can only be permitted to continue making orders after agreeing to the terms of the updated policies.
Firstly, OpenRelay will introduce and maintain a blacklist for tokens that seem to be securities, in an effort to abide by the United States laws. Currently, OpenRelay hasn’t developed any capability to restrict specific assets or asset pairs from being traded, however, to avoid the exchange of securities, some of these assets will be barred from trading, while others will be allowed to use other categories of services available on the platform.
The company will NOT take custody; for example, link sellers and buyers, take part in price negotiations, or give investment advice. According to the firm’s founder, the exchange platform was designed to follow regulations and that traders all over the globe are capable of trading and settling peer to peer. This means that as a relayer, they will operate in a passive system.
Secondly, Relay shall continue to ensure a thorough process of token compliance is in place and that it mirrors regulatory guidance. This is to reduce the probability of listing securities. Ever since its launch, Relay has enjoyed the full-time services of the Director of Token Analysis, who works closely with token issuers to ensure the compliance documentation is complete.
Also, adjustments have already been completed to its widget toolkit product. This product is useful to users because they can now trade Ethereum-based virtual coins on their personal websites. The toolkit also includes a list of cryptocurrencies that are available.
To ensure that all security laws are adhered to, Relay has significantly reduced the list of tokens supported by trading widgets. Once they come up with a review process and are confident that they aren’t securities, the tokens will be gradually added back into the trading widgets.
Relay strives to use blockchain expertise as a way to create financial accessibility and agency, and not to avoid regulatory compliance. The firm has also been very attentive to the control and activities of other regulators. Such keenness has prompted them to evolve in regulatory strategy.
As Relay begins to implement these compliance measures and have a well-established, functional regulatory system, it will ensure success in the creation of an enduring multigenerational company.