A Global Guide to a Crypto Exchange Regulatory Framework

Abstract

The emergence of bitcoin in 2008 led to the growth and widespread use of cryptos and crypto exchanges. Unfortunately, crypto exchanges have been subject to hacks among other problems causing investors to lose billions of dollars. These problems are attributed to a lack of comprehensive regulatory framework for crypto exchanges. To address them, the paper seeks to provide guidelines on core issues that a comprehensive regulatory framework should address such as licences, minimum capital requirements, regulatory security standards, among others, by drawing experiences across various jurisdictions. The paper thereafter concludes by suggesting ways through which such regulation could be properly implemented and implores co-operation from both the exchanges and regulators to ensure regulatory efficiency.

Keywords: crypto, regulation, crypto exchange, initial coin offerings.

DOI: 10.7176/JLPG/90-02

Publication date:October 31^st 2019