Main Monetary Exchanges Divided on Cryptocurrency Adoption Amid Regulatory Uncertainty

The World Federation of Exchanges (WFE), a London-based trade group, launched a report on Tuesday revealing a major divide amongst main monetary exchanges on the adoption of cryptocurrency-related services and products. The report comes at a time when the cryptocurrency market is grappling with regulatory challenges and market volatility.

The WFE surveyed 29 regulated monetary exchanges, together with outstanding members such because the U.S.-based Nasdaq, Germany’s Deutsche Boerse, and Switzerland’s SIX Group.

The survey discovered that 12 of the 29 exchanges at the moment provide cryptocurrency-related services or products. Nevertheless, 17 exchanges have opted to not enterprise into the cryptocurrency house.

Amongst these with out present crypto-related choices, solely seven have plans to introduce such merchandise sooner or later. The remaining 10 haven’t any plans to supply cryptocurrency companies, citing issues over the dearth of uniform regulatory requirements, market volatility, and potential cybersecurity dangers related to crypto property.

The regulatory panorama for cryptocurrencies stays fragmented and unsure. Nasdaq, for example, not too long ago paused its plans to launch a crypto custody enterprise. The corporate cited the shifting regulatory setting within the U.S. as the first cause for halting its digital property custodian enterprise. Nasdaq’s CEO, Adena Friedman, acknowledged that the corporate would proceed to construct know-how capabilities to place itself as a number one digital asset software program options supplier.

Equally, reported that Nasdaq aborted its launch of a custodian enterprise within the U.S. as a result of shifting enterprise and regulatory setting. The change operator can be halting its efforts to pursue a license associated to the enterprise however will proceed to construct out its know-how to deal with crypto for shoppers.

Market volatility is one other vital concern for exchanges. Cryptocurrency costs skilled a pointy decline in 2022 following a collection of collapses at high crypto companies, together with FTX, which left buyers with substantial losses. This volatility has led to elevated requires regulation from lawmakers.

Cybersecurity dangers associated to crypto property additionally stay a major concern. The shortage of a safe and controlled setting for storing cryptocurrencies has been a stumbling block for a lot of exchanges.