Bitcoin Global News (BGN)
May 22, 2018 -- ADVFN Crypto NewsWire -- In March, the SEC
released a statement that warned exchanges from trading assets that
meet the definition of a security and such exchanges must register
with the SEC as a national securities exchange or be exempt from
registration. They also recommended should use a platform that is
registered with the SEC.
The SEC brings strict standards and
also reviews the trading protocols that determine how orders
interact and execute. The access to a platform's trading services
must be the same for all users to meet the standards of an
SEC-registered exchange.
In April, former New York Attorney
General Eric Schneiderman sent letters to thirteen cryptocurrency
exchanges. With regards to Ownership and Control, Basic Operation
and Fees, Trading Policies and Procedures, Outages and Other
Suspensions of Trading, Internal Controls, and Privacy and Money
Laundering. Currently, none of the cryptocurrency exchanges are
registered with the SEC.
Kraken - said
that the exchange will likely register with the US Securities and
Exchange Commission (SEC) as a broker dealer, and then later as an
Alternative Trading System. Being registered as an ATS requires
stricter record keeping and demands more transparency. After being
headquartered in New York, Kraken left in 2015 due to
the BitLicense regulations.
Their CEO Jesse Powell spoke out
adamantly against the intrusion: “I don’t think it necessarily
helps the business. I think we’re doing everything right anyway.’’
He also said that Kraken would need more clarity from the SEC about
which tokens or cryptocurrencies are securities and how to trade
them online legally.
Coinbase indicated that it
is in talks with the SEC about registering as a licensed broker
dealer. Coinbase reportedly met with Office of the Comptroller of
the Currency (OCC) recently to discuss the possibility of obtaining
banking licenses.
Poloniex
- now owned by Circle Pay, the group has also
indicated that it will begin the process of registering acquired
with the SEC and FINRA as a broker dealer and later also
ATS.
Bittrex - “We
look forward to continuing our proactive dialogue with the SEC and
other regulators on how to build a secure, fully-regulated
environment for blockchain that encourages innovation and economic
growth.” Official Statement
By: BGN Editorial Staff
News:
Cryptocurrency
Exchange
Coinbase
Kraken
Poloniex
Bittrex
Cryptocurrency
Regulation
SEC