Crypto Exchanges

Story: SEC Targets Crypto Exchanges as Global Regulators Tighten Rules on Digital Assets

By Bruce Buterin

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EU Parliament Backs Stricter AML Rules. Across the Atlantic, the European Parliament voted to advance a framework that mandates tougher…

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Exchanges Face Compliance Crunch. Crypto platforms are now sizing up what these rules would mean for their operations.

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The final week of April brought a wave of regulatory moves that could reshape crypto trading across three continents. Regulators in the U.S.

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The Securities and Exchange Commission dropped a proposal that would force crypto exchanges to register as securities exchanges if they list tokens the agency views as securities.

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Across the Atlantic, the European Parliament voted to advance a framework that mandates tougher anti-money laundering procedures for crypto transactions.

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South Korea joined the regulatory push. The Financial Services Commission said it plans to require crypto exchanges to obtain licenses before they can operate in the country.

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The regulatory moves come as governments worldwide grapple with how to handle an industry that's grown faster than rule-making can keep up.

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Crypto platforms are now sizing up what these rules would mean for their operations. Registration as a securities exchange in the U.S.

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See also: Galaxy Digitals Alex Thorn Says Banks Will Fight New Stablecoin Yield Rules

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In Europe, the AML framework would add layers of verification for transactions. Exchanges would need to collect more information about users and flag suspicious activity to…

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South Korea's licensing plan would create winners and losers among exchanges. Platforms that can meet the requirements would gain legitimacy and potentially attract more users.

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Industry observers noted the timing of these moves. All three jurisdictions pushed forward with proposals in the same week, suggesting a level of coordination or at least shared…

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Related: MiCA Licensing Puts Crypto Firms on Notice: Three-Domain Expertise Now Non-Negotiable

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The pending approval process will determine whether these proposals become law. In the U.S., the SEC's rule would go through a comment period where industry participants can…

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Crypto firms are preparing for a more regulated future. Some exchanges have already started beefing up compliance teams and legal departments.

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