Regulation
exchanges are tackling regulation and building trust
Kraken global head of banking and payments Kaushik Sthankiya and CoinW exchange president Sonia Shaw discuss the state of cryptocurrency exchanges at the Money20/20 event in Amsterdam.
THE FTX collapse in 2022 brought bearish sentiment to the crypto ecosystem and many traders and investors wondered if they could trust cryptocurrency exchanges.
Shaw says the industry is still recovering from the FTX collapse as it tries to rebuild consumer confidence with regulatory support.
“Everything is definitely coming back, but we’re not back to the peak of 2021 yet,” he added. “I mean, we’re still in the early stages of the whole market coming back, so I think we’re on the right track to restoring the confidence of consumers and also regulators.”
CoinW’s president said the exchange is expanding in the Middle East and is still complying with “all regulations.”
Additionally, Kraken’s Stankiya says the exchange is currently focused on expanding its product range and entering new jurisdictions, while ensuring regulatory compliance. She highlighted that the exchange’s superior customer service, deep liquidity and compliance are Kraken’s key strengths while major exchanges, Binance, for example, have faced regulatory hurdles.
Stankiya added that the approval of the Bitcoin spot (Bitcoin) ETFs in the US have had a “phenomenal positive” impact on cryptocurrency trading on centralized exchanges (CEX).
Both industry experts showed a positive outlook on the crypto ecosystem. Kraken’s head of banking believes CEXs “play a leading role in helping to grow cryptocurrency adoption.”
On the other hand, Shaw predicts that the cryptocurrency trend will shift from “global to local” due to different regulations in different jurisdictions.