Bitwise report to SEC cites transparency as major problem with exchanges

It is being reported by Bitcoin News that a new study from Bitwise, submitted to the SEC, cites transparency as the major issue with crypto exchanges, elaborating that something to the tune of 95% of exchange volume is due to wash trading.

The report explains how there is currently very little in the way of oversight for most major exchanges, meaning that any volume reported is basically just on the honor system. This leads to many exchanges taking part in wash trading, the practice of faking volume by effectively trading between multiple accounts that the exchange controls.

The report feels that upwards of 95% of volume is faked, although other research from The Block showed the number may be lower, along the lines of just 86%, though this is obviously still absurdly high.

The study looked at 83 exchanges and found that 73 of them failed at least one test for real trading volume. Ultimately the report concluded that "10.5 billion dollars out of the 11 billion dollars in reported daily volume (or – 95%) is either fake or wash trading."

Will the crypto market get its act together as the SEC becomes more involved? Stick with Chepicap for all updates!