The recent acquisition of a crypto exchange by Crypto.com signals a shift in the industry, emphasizing the inadequacy of solely relying on VASP licenses and compliance policies to protect retail investors. The collapse of FTX highlighted the dangers of exchanges operating with minimal oversight while attempting to fulfill diverse roles. Current crypto trading practices often expose investors to significant risks due to the lack of robust regulatory frameworks that traditional finance imposes. Unlike traditional markets, where securities regulations prevent fraudulent schemes, the crypto space allows such activities to proliferate. The article argues for the necessity of proper broker licenses, which would impose crucial responsibilities such as asset segregation and real-time risk management. The author suggests that the industry must evolve into a more regulated infrastructure, capable of protecting consumers. While some progress has been noted with established brokers entering the crypto scene and regulators tightening measures, the need for a significant shift remains urgent. The futures of crypto exchanges depend on their willingness to build robust infrastructure and adopt stringent regulatory practices, moving away from weak VASP registrations.

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