Regulated Exchanges Unwilling To List Cryptocurrencies?
Regulated exchanges don't want to list cryptocurrencies despite growing demand.
The World Federation of Exchanges has published a new report analyzing the stock exchanges' involvement in the cryptocurrency market development. WFE noted the growing demand for crypto assets. However, existing risks discourage regulated exchanges from adopting cryptocurrencies.
Dr. Pedro Gurrola-Perez, head of research at WFE, cited new revenue streams and technological advances among the benefits. However, the high market volatility, lack of minimum standards of governance and investor protection, and the risk of cybersecurity breaches are worrisome.
Existing risks get worse as many unregulated crypto platforms perform additional business activities that are prohibited in regular public markets. This discourages regulated exchanges from introducing crypto services.
According to the WFE report, 40% of respondents already offer crypto services. The other 41% plan to introduce them.
The WFE believes that the trading platform regulation should be reinforced. Exchanges will become more confident adopting cryptocurrency services.