- A new offer to auto-regulate has been gaining traction.
- Facebook's partners are uneasy with regulatory scrutiny
- Auto-regulation may raise concerns, digital coin enthusiasts.
Self-regulation for cyber-punks? Cryptocurrencies may be taking another step in their maturing process. FXStreet's Tomàs Salles reports about a new initiative from the Delta Summit in Malta.
OKEx, an exchange based in the Mediterranean island nation is proposing a Self Regulated Organization (SRO) that would unite crypto exchanges in the face of competition from traditional ones and would stay ahead of regulators – before they step in. Enzo Villani, Head of International Strategy and Innovation at OKEx, has invited exchanges, brokers, dealers, funds – and also traders and regulators to join in.
Here are a few slides from their presentation:
-637056992064234758.jpg)
Can such an initiative – by the Malta-based exchange or any other body involved in the industry – succeed?
Perhaps OKEs's proposition is influenced by the US National Futures Association (NFA) – which self-regulates the derivatives industry since 1982. The NFA works with the government regulator, the Commodity Futures Trading Commission (CFTC) to steer the industry forward.
The move comes as prominent payment providers such as Mastercard and Visa are shying away from the world of digital coins due to regulation. These large companies are involved in Facebook's Libra project – which has come under scrutiny from lawmakers as well as regulators – are now considering their participation. Self-regulation may serve as a counter-force to a push from regulators against the social behemoth's project.
One group of people involved in cryptocurrencies may feel unease with the initiative – the original cyberpunks. They dreamt up a decentralized system that would circumvent governments – not a world with a central governing body– even if it is self-regulation. A global regulator may even sound worse than country-level administrators for some.
It will be interesting to see if this new initiative will gain traction, how it will impact the industry – and eventually prices of cryptocurrencies. Better reputation for digital coins – and the bodies that allow trading in them – may attract mainstream investors and eventually push prices higher.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum dips slightly amid Renzo depeg, BlackRock spot ETH ETF amendment
Ethereum (ETH) suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH (ezETH) crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective (INJ) price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
US intensifies battle against crypto privacy protocols following crackdown on Samourai Wallet
CEO Keonne Rodriguez and CTO William Lonergan of Samourai Wallet were arrested by the US Department of Justice (DoJ) on Wednesday and charged with $100 million in money laundering on a count and illegal money transmitting on another count. This move could see privacy-focused cryptocurrencies take a dip.
Near Protocol Price Prediction: NEAR fulfills targets but a 10% correction may be on the horizon
Near Protocol price has completed a 55% mean reversal from the bottom of the market range at $4.27. Amid growing bearish activity, NEAR could drop 10% to the $6.00 psychological level before a potential recovery. A break and close above $7.95 would invalidate the downleg thesis.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?