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Cryptocurrency exchanges do more than just organize trading and can sometimes work against their clients.
This opinion was expressed by the head of SEC Gary Gensler in an interview with the Wall Street Journal.
“The public expects some profit based on the efforts of some entrepreneur or group of programmers who received the money in their exchanges from people to provide them trading facilities but any such business must first consult the regulator. ” the official said.
He restated his intention to take tougher measures to protect investors and stressed that as exchanges hold users’ funds and gather users’ personal and financial information so these companies must interact with the Commission.
“I said publicly: come in, work with the SEC, and register. Some substandard activities also take place within them, where these exchanges go against their clients, don’t solve their problems for months, support don’t update their clients for weeks, so Investors must receive reliable protection, SEC cannot overlook any such behavior that hurt investors.” Gensler emphasized.
Earlier, the official admitted that cryptocurrencies have a future, but only in the “environment of trust.” In his opinion, the existence of the industry outside the regulatory perimeter can lead to a loss of public confidence in the technology.
In May, the chairman of the Commission called on the US Congress to clarify the regulation of the crypto industry and expressed the opinion that rules are necessary for digital assets to survive.
In October, Gensler announced that the Commission had no plans to ban cryptocurrencies.
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- SEC Chairman, Gary Gensler Confirms That SEC Has No Plans To Ban Crypto