Okcoin CCO Says Tighter Crypto Regulations In The US Will Not Help Stop Fraud Aug 13, 2021

Megan Monroe, Okcoin’s chief compliance officer, mentioned whereas there are nonetheless some grey areas for crypto within the U.S., additional regulation is probably not one of the best answer.

In a press release to Cointelegraph, Monroe mentioned present US rules are enough to supervise crypto exchanges, token issuers and depository suppliers, however “there are limits” the laws of those federal monetary regulators is neither clear nor cooperative. “Instead she advocates a clearer framework for identifying which crypto companies need to be regulated and for letting investors know what protections are available.

“A transparent regulatory framework with established regulatory boundaries, versatile compliance requirements and open communication channels with subscribers (in addition to with authorities regulators),” said Okcoin, would be a good way to create a development framework for market participants. CCO. “[This] will present retail buyers who want to work with regulated corporations a greater understanding of the investor safety accessible to them. “

She added:

“We don’t consider that additional regulation will essentially forestall fraud and abuse of the platform.” […] Fraud should not be limited to focusing on retail client compliance issues on the exchange. “

Two of the highest authorities businesses concerned in regulating digital property within the United States, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have statements.

The SEC normally makes use of the Howey Test to find out whether or not a token is a safety, with Chairman Gary Gensler arguing that the crypto trade is focusing on decentralized exchanges. However, former CFTC chairman Christopher Giancarlo has acknowledged that cryptocurrencies are commodities and due to this fact topic to CFTC regulation.

The lack of readability can confuse crypto corporations contemplating transferring to the US or native corporations making the transition to the digital house. David Schwartz, chief expertise officer of Ripple Labs, advised Cointelegraph earlier this 12 months that “it is very difficult to find out what laws apply and how they apply to something new,” similar to cryptocurrency or blockchain expertise.

“Over time, regulators have learned about the industry and expanded their reach to incorporate new blockchain technologies such as decentralized exchanges and DApps,” mentioned Monroe. “But regulation is still lagging behind industry innovation, so regulators are not yet required to issue comprehensive regulatory guidance on decentralized finance technology.”

Related: Will regulation adapt to cryptocurrencies or will cryptocurrencies comply with regulation? Experts reply

Okcoin CCO says the “incubator” strategy may very well be a attainable answer to this “patchy financial regulation” the place crypto merchants and firms can function with out concern. It additionally promotes tasks to obviously determine dangers for each buyers and customers and improves communication and collaboration between businesses such because the CFTC, the SEC and the Financial Crimes Enforcement Network.