Crypto Exchange Compliance Self-Regulated Organization Planned By OKEx

News, Regulation | October 7, 2019 By:

Cryptocurrency exchange OKEx has announced the creation of a Self-Regulated Organization (SRO) aiming to standardize crypto exchange compliance practices and policies.

In a press release, OKEx said that it wants exchanges and other crypto companies in the global crypto space to be the founding members of this new initiative, which shares many similarities to the World Federation of Stock Exchanges, United States’ FINRA, and the World Economic Forum.

“This SRO will be an independent, membership-based organization that is neutral and open to exchanges of all sizes and jurisdictions,” OKEx said. “Member exchanges will work together to define and adopt standards that will promote digital asset adoption globally, educate governments and regulators, and develop metrics and criteria for trading, listings, and reporting.”

According to OKEx, crypto exchanges share a common goal to protect investors and traders, and to foster innovation in the cryptocurrency ecosystem. The new initiative will reportedly allow them to more effectively set standards to usher in financial security for millions of people.

“Cryptocurrencies are global and decentralized, and the industry remains nascent, thus regulations by jurisdiction are not enough,” said Andy Cheung, Head of Operations for OKEx. “The only way for exchanges to grow and deliver impact is by joining together to develop practices and policies that will set a global standard and adapt to regional regulatory frameworks.”

Enzo Villani, Head of International Strategy and Innovation at OKEx, said that while other organizations have introduced initiatives to elevate standards for crypto exchanges, most are focused on one jurisdiction.

“We applaud their efforts and OKEx will determine which ones are important to our customers,” Villani said. “Our initiative is focused on creating a global SRO that can provide international standards. We are in discussions with other exchanges and market participants to join us in formalizing a global SRO.”