Cryptocurrency Exchanges Must Be Like Stock Markets: US Regulator
According to some analysts view, cryptocurrency markets still lack proper oversight and regulations. The U.S. Securities and Exchange Commision (SEC) head Brett Redfearn, stated that the current state of cryptocurrency markets resemble the “Wild West”. The body is generally concerned with cryptocurrency market manipulation, cybersecurity, fraud, money laundering and terrorist financing. Redfearn pointed in his article:
“ I’m not sure all of the rules would translate over, but there are certainly principles that exist in that space that we have to then apply in some respect to what’s happening with crypto-asset trading”.
The SEC isn’t only concerned with cryptocurrency space. The body is also pay attention on ICO market.
In the past, the SEC stated multiple times that investors should be very careful when they invest in ICOs and token sales. The US regulatory agency is worried that most ICO tokens may be classified as securities and don’t comply with the regulations that traditional securities do.
Redfearn says, that there are no registered exchanges to trade on those products. Also he added:
I’m not sure all of the rules would translate over, but there are certainly principles that exist in that space that we have to then apply in some respect to what’s happening with crypto-asset trading,
Many experts from cryptocurrency space believe, that the cryptocurrency and ICO market will be better off once regulators create an appropriate regulatory framework. The could give institutional investors more confidence and motivation to invest in the cryptocurrency market.
