Today has been a big day for the crypto industry as global regulators move to categorise digital assets other than Bitcoin as Securities. Industry players gathered at London’s Blockchain Economy Summit to discuss the implications of this and what’s next for crypto.
At the heart of the conversation is the idea that exchanges need to work hand-in-hand with regulators to protect innovation. This means four things: communication, stabilising markets, increased transparency, and better security.
Delphine Forma, Senior Compliance Manager at BitMEX exchange, explained that CEX’s need to open up transparency to users to help manage risks. Michelle Maiuri, Marketing & Growth Director at Deepcoin Exchange, agreed, adding that she anticipates customer education to be at the heart of progress in 2023.
Peter Stilwell, Coinbase’s Head of Business Development EMEA, argued that things are getting better with regulators. He shared his experience of the UK Financial Conduct Authority’s regulatory sandbox, which he found to be a great place to innovate with live users in front of regulators’ eyes.
Daniel Antcliff, Head of Business Development and Operations at Gate.io, highlighted the importance of communication between regulators and crypto firms. He explained that regulators need to understand crypto from a user and CEX perspective to understand the work and due diligence done at Exchanges for 3rd party listings.
Ultimately, communication, transparency, and customer education are key to exchanges working better with regulators and promoting innovation in the crypto industry.