April 1, 2019
In its response, the WFE highlights the importance of distinguishing between so-called cryptoasset ‘exchanges’ and the regulated, secure and lit markets that real exchanges provide. The WFE cautions that careless usage of the label ‘exchange’ may give investors a false sense of security, leading them to believe such platforms meet the regulatory standards of real exchanges that are regulated and offer transparent public markets. In describing a platform as an exchange, they should demonstrate that they meet appropriate standards. If the term ‘exchanges’ is going to be used in relation to cryptoasset platforms, the WFE urges the FCA to enforce standard exchange regulations to ensure cryptoasset platforms are compliant with the rules adhered to by exchanges.