Exonium Exchange
Published in

Exonium Exchange

Relationship between Cryptocurrency Exchange and Regulation 加密货币交易所与政府监管之间的关系

Should cryptocurrency be regulated or not? 加密货币是否应由政府监管?

In 2018, a relatively new exchange was just one of the hundreds of obscure, new cryptocurrencies exchanges that spawned. Yet, the exchange has caught the attention of many, recording daily volumes exceeding $5 billion, in some instances topping prominent exchanges like Binance, Bitfinex, and Bithumb.

On CoinMarketCap, the adjusted market volume of this exchange is more than $1 million whereas the 24-hour market volume is more than $5 billion.

“Many market participants say they suspect these fast-growing exchanges are either offering incentives that encourage users to inflate volumes, or not doing enough to stop abuse on their platforms. One red flag of this exchange: Its reported volume is by far the biggest among 219 platforms tracked by CoinMarketCap.com, despite traffic on its website amounts to a tiny fraction of most peers. “ — Bloomberg

Doubts about the integrity of crypto-markets have deterred some professional institutions and fund managers from investing in cryptocurrencies and prompted regulators to take a closer look at exchanges, potentially building a process to charge these exchanges for flouting securities laws.

U.S. authorities have expressed similar concerns. Bloomberg reported in May that the U.S. Justice Department has opened a criminal probe into suspected illegal practices in crypto markets, including wash trades.

Market participants say quantifying the scale of suspected volume exaggeration is difficult. Even the largest exchange operators can’t be trusted. Automated trading is widely used in traditional markets under regulatory oversight, though it can facilitate manipulation when unmonitored.

“Fake volumes are unfortunately all too common in today’s crypto-exchange ecosystem,” “The industry will mature of course. As it does, more legitimate exchanges will come along and provide enough real, beneficial structural incentives so that people won’t be misled into trading on questionable venues. It will be a healthier marketplace.” — Jim Bai, CEO of EverMarkets Exchange

Like other crypto exchanges in Singapore, this exchange isn’t directly regulated by the Monetary Authority of Singapore (MAS).

“Digital tokens are mainly traded on opaque markets, with no regulatory protection for investors,” “There may not be enough active buyers or sellers and consumers may not be able to exit their token investments easily.” — MAS

Relationship between Regulations and Cryptocurrencies
Cryptocurrencies’ prices are known to react in a volatile manner to any regulatory-related news. The impact depends on the specific regulatory category to which the news relates: events related to general bans on cryptocurrencies or to their treatment under securities law have the greatest adverse effect, followed by news on combating money laundering and the financing of terrorism, and on restricting the interoperability of cryptocurrencies with regulated markets. News pointing to the establishment of specific legal frameworks tailored to cryptocurrencies and initial coin offerings coincides with strong market gains.

These results suggest that cryptocurrency markets are still correlated to regulated financial institutions to operate and that these markets are segmented across jurisdictions, bringing cryptocurrencies within reach of national regulation.

Both price volatility and the ideology of decentralized assets have attracted much attention to cryptocurrencies. Many are analyzing the feasibility of decentralised concepts of money and the economics of blockchain technology. Concurrently, many national governments and financial institutions have expressed concerns over cryptocurrency’s bubble-like market behaviour, the widespread proliferation of scams and anonymity which will result in challenges such as anti-money laundering and anti-terrorism funding efforts.

Although many of the concerns raised would also apply to other asset classes and emergent technologies, cryptocurrencies belong to an unique family as it can function without institutional backing and are intrinsically borderless. This raises the question of whether one can expect national regulation to be effective.

The goals of regulating cryptocurrencies are largely similar to those for other financial assets and services and can be classified into three categories: combating the use of funds for illicit activities; protecting consumers and investors against fraud and other abuses, and ensuring the integrity of markets and payment systems and overall financial stability. Another key legal status issue is whether cryptocurrencies are treated as securities — i.e. tradable instruments used to raise funds by representing a promise to pay in the future — and thus come under heightened regulation and oversight.

Announcements regarding potential regulatory actions can have a strong price impact on cryptocurrency markets and set the direction of how the industry would mature and combat its inherent challenges. Regulators seem to have adopted an open minded approach to cryptocurrencies that does not stifle innovation. Although the SEC will increase the number of investigations and enforcement actions, organizations that issue tokens in a compliant manner will thrive and grow. However, regulation may go against the initial ideology of Satoshi Nakamoto when he first invented Bitcoin. Cryptocurrencies are meant to remove governments and central banks out of the equation when it comes to decentralised finance.

***Disclaimer: This content is not financial advice and should not form the basis of any financial investment decisions nor be seen as a recommendation to buy or sell any good or product. Trading cryptocurrency is complex and comes with a high risk of losing money. You should carefully consider whether trading cryptocurrencies is right for you and take the time to learn how trading works and decide how much money you are prepared to risk.

Exonium is a brand new world-class crypto exchange that places an emphasis on security and protection of users’ assets as well as high liquidity.

Exonium was founded to propel cryptocurrency into mass adoption. Merging the best of the exchange ecosystem and the principles of social network platforms, the exchange aims to put the power back in the hands of the community by empowering and enabling traders.

Be part of the future. Be in power. Be in a network of financial freedom.

Connect with us on Twitter, Facebook and LinkedIn for the latest updates

Ready to start trading on Exonium? Try out the seamless registration process and sign up for a new account today at https://exonium.one/

Quick guide:

在2018年,一个相对较新的交易所只是所产生的数百个晦涩,新的加密货币交易所之一。然而,该交易所吸引了许多人的注意力,日交易量超过50亿美元,在某些情况下甚至超过了币安等著名交易所。

在网络图表上,该交易所的调整后市场总量超过100万美元,而24小时市场总量超过50亿美元。

“许多市场参与者表示,他们怀疑这些快速增长的交易所正在提供鼓励用户增加交易量的激励措施,或者做得不足以阻止平台上的滥用。该交易所的一个危险信号:尽管其网站上的访问量仅是大多数同行的一小部分,但其报告的交易量是迄今为止网络图表跟踪的219个平台中最大的。 “-彭博社

对加密市场的完整性的怀疑阻止了一些专业机构和基金经理对加密货币进行投资,并促使监管机构仔细研究了交易所,可能建立一种程序来对这些交易所进行收费,以漠视证券法。

美国当局也表达了类似的担忧。彭博社5月报道称,美国司法部已对包括加密交易在内的加密市场中的涉嫌违法行为展开刑事调查。

市场参与者表示,量化可疑数量夸大的规模非常困难。即使是最大的交易所运营商也无法信任。尽管在不受监控的情况下自动交易可以促进操纵,但自动交易已广泛用于传统市场中。

“不幸的是,在当今的加密交易生态系统中,假货数量太普遍了。”“该行业当然会成熟。这样一来,就会出现更多的合法交易,并提供足够的真实,有益的结构性激励,从而不会使人们被误导在可疑场所进行交易。这将是一个更健康的市场。” — Evergreen加密货币交易所首席执行官,Jim

与新加坡的其他加密货币交易所一样,该交易所不受新加坡金融管理局的直接监管。

“数字代币主要在不透明的市场上交易,对投资者没有监管保护。”“可能没有足够的活跃买家或卖家,并且消费者可能无法轻易退出其代币投资。” -新加坡金融管理局

众所周知,加密货币的价格会对任何与监管有关的新闻产生不稳定的反应。影响取决于新闻所涉及的特定监管类别:与对加密货币的一般禁令或根据证券法对其进行的处理有关的事件具有最大的不利影响,其次是有关打击洗钱和资助恐怖主义以及限制恐怖主义的新闻。加密货币与受监管市场的互操作性。指向建立专门针对加密货币和初始代币发行的特定法律框架的新闻与强劲的市场收益相吻合。

这些结果表明,加密货币市场仍与受监管的金融机构相关联,并且这些市场在各个司法管辖区进行了细分,从而使加密货币处于国家监管范围之内。

价格波动和分中心资产的意识形态都引起了人们对加密货币的极大关注。许多人正在分析货币去中心化概念的可行性以及区块链技术的经济学。同时,许多国家政府和金融机构对加密货币的泡沫市场行为,骗局的广泛传播和匿名性表示担忧,这将带来诸如反洗钱和反恐筹资等挑战。

尽管提出的许多担忧也将适用于其他资产类别和新兴技术,但加密货币属于一个独特的家族,因为它可以在没有机构支持的情况下发挥作用,并且本质上是无边界的。这就提出了一个问题,即人们是否可以期望国家监管有效。

监管加密货币的目标在很大程度上与其他金融资产和服务的目标相似,可以分为三类:打击将资金用于非法活动;保护消费者和投资者免受欺诈和其他滥用,并确保市场和支付系统的完整性以及整体财务稳定性。另一个重要的法律地位问题是,加密货币是否被视为证券-即通过代表未来的付款承诺来筹集资金的可交易工具-因此受到严格的监管和监督。

有关潜在监管措施的公告可能会对加密货币市场产生重大价格影响,并为该行业如何成熟并应对其固有挑战设定方向。监管机构似乎对加密货币采取了开放的态度,不干扰创新。尽管美国证券交易委员会将增加调查和执法行动的数量,但以合规方式发行加密货币的组织将蓬勃发展。但是,监管可能与中本聪首次发明比特币时的最初意识形态背道而驰。当涉及分散金融时,加密货币的目的是使政府和中央银行摆脱困境。

***此内容不是财务建议,不应作为任何财务投资决策的基础,也不应被视为购买或出售任何商品或产品的建议。交易加密货币很复杂,并且有很高的赔钱风险。您应该仔细考虑交易加密货币是否适合您,并花点时间学习交易的工作方式并确定您准备冒多少风险。

嘉库是一个全新的世界级加密货币交易所,重点关注用户资产的安全性和保护以及高流动性。

嘉库成立是为了推动加密货币被广泛采用。融合了交易所生态系统的最佳功能和社交网络平台的原理,该交易所旨在通过赋予交易员权力和能力,将权力重新交到社区手中。

成为未来的一部分。掌权。处于包容性和财务自由的网络中。

Twitter, FacebookLinkedIn上与我们联系以获取最新更新

准备好开始用嘉库交易了吗?试试无缝注册过程,今天就在 https://exonium.one 注册一个新帐户!

快速指南:

如何进行外源登记

如何存款

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Exonium

ExoniumDEX is a decentralised exchange designed to be a unifying exchange of all coins through a unique oracle concept and bridging function.