The World Federation of Exchanges (WFE) today published a report, ‘Promoting Sound Marketplaces – DeFi/CeFi, Crypto Platforms & Exchanges’. The report draws on the collective experience of regulated market infrastructures and makes six recommendations in light of issues that continue to affect the crypto-currency industry following several high-profile controversies and collapses.
The WFE’s analysis also found that whilst Decentralised Finance might bring innovation to financial products, crypto-trading platforms (CTPs) are frequently not as decentralised as they first appear, which presents some risks. In the short term, the WFE recommends that CTPs disclose their regulatory status and do not describe themselves as exchanges until they are appropriately regulated and adhere to the standards set out in the report.
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