OKEx, the leading digital asset exchange platform has taken a step forward to make things better for the entire cryptocurrency industry. According to reports, OKEx is in the process of putting together players in the crypto industry to create a Global Self-Regulated Organization (SRO) so that a standard set of practices and policies are put in place which will, in turn, help them operate within the confines of the law while maintaining high regulatory standards. The global nature of this organization also paves the way for the creation of a universal rulebook for cryptocurrency related businesses to follow.
The initiative by OKEx is comparable to other global and national financial bodies like the World Federation of Stock Exchanges, FINRA in the United States, and the World Economic Forum. The first step towards the creation of a Global SRO for the crypto industry was taken at the recently concluded DELTA Summit where former Nasdaq Executive and current Head of International Strategy and Innovation at OKEx Enzo Villani made the announcement. As per the current road map, the SRO will function as an independent, neutral organization with membership open for all exchanges, irrespective of their size or jurisdiction in which they operate. The Crypto SRO is also expected to play a crucial role in taking up the cause of the cryptocurrency exchange platforms by promoting cryptocurrency adoption, educating government organizations, policymakers and regulators, along with collection and analysis of industry data to come up with metrics and criteria to be followed while listing and trading different digital assets on platforms. It is also expected to create a reporting mechanism similar to the ones existing in the conventional financial and banking sectors for compliance.
Following the announcement of OKEx-led SRO, Enzo said, “While other organizations have introduced initiatives to elevate standards for crypto exchanges, most are focused on one jurisdiction. We applaud their efforts and OKEx will determine which ones are important to our customers. Our initiative is focused on creating a global SRO that can provide international standards. We are in discussions with other exchanges and market participants to join us in formalizing a global SRO.”
With all the mechanisms in place, the SRO when fully functional can become a governing body for all cryptocurrency and digital asset-related transactions, ensuring legal status for cryptocurrencies across the world. The OKEx led SRO can also be an answer to various discussions between government representatives regarding cryptocurrency regulations at international summits and conferences like the World Economic Forum and the G20 Summit.
Regarding the need for a global cryptocurrency SRO, OKEx’ Head of Operations Andy Cheung said,
“Cryptocurrencies are global and decentralized, and the industry remains nascent, thus regulations by jurisdiction are not enough. The only way for exchanges to grow and deliver impact is by joining together to develop practices and policies that will set a global standard and adapt to regional regulatory frameworks.”
OKEx envisions its attempt to create global SRO as not just an initiative to bring regulatory clarity, implement best practices and promote cryptocurrency exchanges and trading platforms across jurisdictions, but also as an opportunity to add value to the community by protecting investors and traders while fostering innovation throughout the ecosystem.