Exchanges Federation Promotes Crypto Trading Regulation and Integration with Traditional Finance

The World Federation of Exchanges (WFE) has identified a significant opportunity for crypto-asset trading platforms (CTPs) to enhance their role in the broader economy and society. In a recent paper published on September 28, the WFE offered some candid insights regarding CTPs and provided recommendations for regulators.

The WFE stated, “CTPs should embrace a certain level of regulation as a means to enhance the attractiveness of their markets.” The organization outlined six key principles for the regulation of CTPs. One of the primary recommendations is to separate functions to prevent trading against their clients, a concern frequently raised by Gary Gensler, the chairman of the United States Securities and Exchange Commission. The WFE asserted that until CTPs adhere to these standards, they should refrain from labeling themselves as exchanges.

This guidance emphasizes the importance of establishing regulatory frameworks that can foster trust and integrity within the CTP market.