The World Federation of Exchanges says Crypto-Asset Trading Platforms should have strict regulations like existing regulated exchanges, as stated in their recent report titled 'Good Markets for Good Outcomes – the Role of Governance in the World’s Exchanges.'
On Friday, the Central Bank of Nigeria removed the ban on cryptocurrency transactions. This action comes years after the 2021 circular that prohibited banks and financial institutions from dealing in or facilitating transactions in crypto assets due to money laundering and terrorism financing risks.
The latest circular partly read, “From the commencement of these regulations, Fl shall not open or permit the operation of any account by any person or entity to conduct the business of virtual/digital assets unless that account is designated for that purpose and opened in line with the requirement of these Guidelines.”
However, banks were still barred from trading, holding or transacting cryptocurrencies, the CBN said.
The WFE, in its latest report, said that the failures of several crypto trading platforms call for increased interest in regulating them in the same manner as existing regulated exchanges.
“The WFE sees the benefits that technological innovation can bring to financial markets. Our comments here should not be taken as reflecting on the many legitimate and innovative businesses involved in the development and promotion of crypto or any other technology. We offer a valuable perspective on the need for CTPs, and any other new type of entrant in any other field, to be both regulated and operated under the same principles as the regulated exchanges run by our members. Concerning the principles behind a successful financial ecosystem, everyone should evolve beyond the Silicon Valley mantra of “move fast and break things” to one of “if it ain’t broke, don’t fix it” – and, in fact, ‘respect it!’
“The WFE supports governments and regulators in subjecting crypto-asset trading platforms to the rules and laws governing exchanges to achieve a technology-neutral approach to regulation.”