Regulation
exchanges navigate regulation and build trust
Global Head of Banking and Payments at Kraken Kaushik Sthankiya and CoinW exchange President Sonia Shaw discuss the state of cryptocurrency trading at the Money20/20 event in Amsterdam.
THE FTX collapse in 2022 brought bearish sentiment in the crypto ecosystem and many traders and investors wondered if they could trust crypto exchanges.
Shaw says the industry is still recovering from FTX’s collapse while trying to rebuild consumer confidence with regulatory support.
“Everything is definitely coming back, but we haven’t really gotten back to the peak of 2021 yet,” she added. “I mean we’re still in the early stages of this whole market coming back, so I think we’re on the right track to rebuilding consumer confidence and also regulator confidence.”
CoinW’s president said the exchange was expanding into the Middle East and still complies with “all regulations.”
Additionally, Kraken’s Sthankiya says the exchange is currently focused on growing its product line and entering new jurisdictions while ensuring regulatory compliance. He highlighted that superior customer service, strong liquidity and exchange compliance are Kraken’s main strengths, while major exchanges, Binance, for example, face regulatory hurdles.
Stankiya added that the approval of the Bitcoin spot (BTC) ETFs in the United States have had a “phenomenally positive” impact on crypto trading on centralized exchanges (CEX).
Both industry experts showed a positive outlook on the crypto ecosystem. The Kraken banking head believes that CEXs “play a leading role in helping to increase crypto adoption.”
On the other hand, Shaw expects the crypto trend to shift from “global to local” due to different regulations across jurisdictions.