The World Federation of Exchanges, WFE, has issued a set of recommendations for the crypto-trading industry as concerns about regulation and adoption grow.
The top recommendation is to separate market infrastructure functions to limit crypto trading platforms . . .
from trading in conflict with their customers.
Second, authorities should create systems that check wider risks, especially in price-determinant markets.
Other recommendations include: Hold sufficient financial resources to meet expected operational stress events; Facilitate compliance with best execution requirements; Increase robustness of listing standards; Have appropriate governance and management requirements.
It is worth noting that following the fall of FTX in November 2022 , most centralized crypto exchanges have released periodic proof-of-reserves to show