Setting new standards for crypto exchanges in the post-FTX era: Report
The year 2022 saw a historic breakdown of trust in exchanges and other crypto service providers. The collapses of Sam Bankman-Fried’s FTX and Alex Mashinsky’s Celsius are still fresh in the community’s memory, SBF’s trial only recently having concluded. These cases serve as a painful reminder that fraud and bad business practices can happen in corporations of any size and that crypto as a nascent industry is especially susceptible. A sleek website, high trading volume or prime-time television ads are no guarantee that a customer’s savings will be safe.
To advance the industry, it is imperative to set new standards for centralized third party service providers in crypto. To this end Cointelegraph Reseach’s new report conducted a survey of 9 major crypto exchanges (Binance, Bit2Me, Bitfinex, Bitstamp, Bybit, Coinbase, HTX, Kraken, OKX) and compared them with a special focus on consumer and funds protection.
Download a PDF of the Report for free from the Cointelegraph Research Terminal.
The report analyzed whether companies are located in a tax haven or in a pro-customer jurisdiction, the transparency of their corporate finances, and how they ensure the user’s assets are secure and well-handled. These considerations are especially relevant for risk-averse individuals and businesses — those who are willing to compromise on fees and trading volume to ensure that the funds they hold on an exchange have all possible protections.
Some jurisdictions, often those that are notorious for being tax havens, offer companies leeway to do less for consumer protection and regulatory compliance. This ranges from the safekeeping of personal data to responsible risk disclosure. All other things being equal, it can sometimes be a red flag if
Read more on cointelegraph.com
