OKEx announces global self-regulated organization initiative for crypto exchanges
Thu, 03 Oct 2019, 04:31 am UTC
Leading crypto spot and futures exchange OKEx is establishing a global Self-Regulated Organization (SRO) in order to standardize exchange practices and policies.
The initiative was announced during day one of the DELTA Summit in Malta, the international “Blockchain Island” and OKEx’s headquarters.
As per a press release shared with TokenPost, OKEx is engaging exchanges and market participants in the global crypto-trading community to become members of this initiative, which is similar to the World Federation of Stock Exchanges, FINRA in the United States, and the World Economic Forum.
The SRO will be an independent, membership-based organization that is neutral and open to exchanges of all sizes and jurisdictions. Member exchanges will work together to define and adopt standards with the objective of promoting digital asset adoption globally, educating governments and regulators, and developing metrics and criteria for trading, listings, and reporting.
“Cryptocurrencies are global and decentralized, and the industry remains nascent, thus regulations by jurisdiction are not enough,” said Andy Cheung, Head of Operations for OKEx. “The only way for exchanges to grow and deliver impact is by joining together to develop practices and policies that will set a global standard and adapt to regional regulatory frameworks.”
Emphasizing on the common goal to protect investors and traders and to foster innovation, OKEx is inviting other exchanges to join the initiative and establish standards for market-making, listings, delistings of digital assets, and other items critical to the growth of the entire crypto industry. It said that a joint effort can more effectively set standards to usher in financial security for millions of people.
Enzo Villani, Head of International Strategy and Innovation at OKEx, noted that similar initiatives introduced by other organisations are usually focused on one jurisdiction.
“We applaud their efforts and OKEx will determine which ones are important to our customers. Our initiative is focused on creating a global SRO that can provide international standards,” said Villani. “We are in discussions with other exchanges and market participants to join us in formalizing a global SRO.”
Last month, Japanese securities companies – SBI Securities, Nomura Securities, Daiwa Securities Group, and online brokerages Kabu.com Securities, Rakuten Securities and Monex Group – teamed up to establish an organization that will establish rules for security token offerings (STOs).
More recently, Coinbase, along with Anchorage, Bittrex, Circle, DRW Cumberland, Genesis, Grayscale Investments, and Kraken, introduced the Crypto Rating Council, an organization that aims to help traders comply with U.S. federal securities laws.
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