Today the World Federation of Exchanges (WFE) published a paper aimed at promoting “sound marketplaces” in the crypto sector. WFE is the global body for exchanges and central counterparty clearing houses (CCPs). Crypto trading platforms (CTPs) are the focus of the paper, with the WFE deliberately avoiding referring to them as exchanges.
“The exchange industry continues to believe in the promise of crypto trading and digital assets and is working with all stakeholders to evolve market structure and standards to the level necessary to facilitate growth and trust in these markets,” said Nandini Sukumar, CEO of the WFE. “These six key principles should be a checklist for any CTPs that are serious about meeting the standards expected of a credible operator of markets.”
The WFE doesn’t want to see regulators smother the sector. It wants to encourage the sector to grow while protecting investors. However, it is also keen on having a level playing field, as current crypto platforms are generally unregulated. They perform functions that would not be allowed in traditional finance (TradFi). Hence, they want to see the principle of ‘same activity, same risks, same rules’ applied.
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