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SEC Chairman warned against crypto exchanges working against the best interests of their clients

                                                            Gary Gensler – Vorsitzender der US Securities and Exchange Commission – argumentierte, dass es Cryptowährungsbörsen gibt, die Regeln umgehen und gegen ihre eigenen Kunden wetten.  Er erinnerte daran, dass die meisten digitalen Assets in den Geltungsbereich der SEC fallen und mit ihnen operierende Börsen sich bei der Aufsichtsbehörde registrieren lassen sollten.

SEC plans to redouble its enforcement efforts

The chairman of America’s top financial watchdog – Gary Gensler – has repeatedly pushed for comprehensive rules to be applied to the digital asset industry. Last year he revealed he was “fascinated” by the industry but would like investors to be involved in dealing with it Bitcoin or altcoins enjoy maximum protection.

In a recent interview for Bloomberg News, Gensler expressed concerns that some crypto exchanges are not protecting their customers with the necessary security mechanisms. Some of these areas to be aware of include custody and market making. The American opined that this “mixing up” of services might not be in customers’ best interests.

“Crypto has many of these challenges – platforms act before their customers. In fact, they often trade against their clients because they are market-making against their clients.”

Gensler reiterated that most digital assets fall within the purview of the commission. As such, exchanges offering crypto opportunities should register with the SEC to ensure that the regulator will increase its enforcement efforts in this space going forward.

Speaking about stablecoins, Gensler claimed that three of the leading – tetherUSD Coin and Binance USD – Facilitate trading on major exchanges by “potentially” avoiding anti-money laundering and know-your-customer rules:

“I don’t think it’s a coincidence. Each of the big three was created by the trading platforms to facilitate trading on those platforms and potentially avoid AML and KYC.”

In response to his comments, Binance assured that its stablecoin Follow “strict guidelines” and remain “transparent to the user community”.
Gary Gensler. CNBC

The SEC’s focus in 2022 is on crypto exchanges

In January, Gensler opined that digital asset platforms should face increased scrutiny from financial regulators, who should directly regulate such companies to give investors more protection:

“I have asked staff to explore all options to bring these platforms into the remit of investor protection. If trading platforms don’t get into the regulated space, it would be another year of public vulnerability.”

In late 2021, the SEC appointed Corey Grayer as Senior Advisor whose primary role is to advise Gensler on crypto regulations. The former had previously solved “questions from consumer and investor protection”.

Source: Crypto News Deutsch

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