The World Federation of Exchanges (WFE) Survey Highlights Concerns About Hosting Crypto Assets
The recent survey conducted by the WFE reveals that less than 50% of respondents are willing to host crypto assets without safer options like exchange-traded funds (ETFs). Out of the 29 exchanges surveyed, only 12 currently support crypto, while seven are interested in offering it in the future. According to Dr Pedro Gurrola-Perez, head of research at the WFE, there is a growing demand for crypto products and services. However, cybersecurity risks and unclear regulations make it a challenging area for some exchanges.
WFE Believes ETFs Will Enhance the Credibility of Global Crypto Market
The CEO of the WFE, Nandini Sukumar, believes that the introduction of exchange-traded products (ETPs) will provide much-needed momentum to the crypto industry. Several US firms have already applied to launch a Bitcoin ETF, indicating a positive trend. Sukumar emphasizes that the exchange-traded model, which prioritizes investor trust, transparency, and accountability, will gain further momentum as the crypto market matures and integrates with mainstream financial markets.
New Laws and Regulations Needed for Exchange Participation
In a recent interview with BeInCrypto, John Palmer, President of Cboe Digital, highlights the importance of winning customer trust in the progress of digital asset exchanges. He mentions that Cboe Digital operates under a two-tier exchange system that ensures transparent trades. On the other hand, major crypto exchanges that perform both brokerage and clearinghouse functions may potentially trade against their customers, which is illegal under US exchange laws. Additionally, the London Stock Exchange Group plans to launch a digital exchange business that complies with regulations in all jurisdictions it operates.
Hot Take: Adaptation of Ownership Models is Crucial for the Future of Tokenized Assets
The rapid advancements in tokenized assets and blockchain technology have raised concerns about outdated property rights laws. Mitch DiRaimondo of SteelWave points out that asset transfers over blockchains will not fully benefit from increased liquidity unless ownership models quickly adapt. As banks like Goldman Sachs, Citi, and Deutsche Bank move towards faster transfers of tokenized assets, regulations regarding fractionalized ownership will play a significant role in shaping the future of the market.
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