The head of the US financial market regulator warns that cryptocurrency platforms will not survive without supervision
The head of the US financial market regulator has warned that cryptocurrency trading platforms will have no future unless they work with regulators.
Gary Gensler, chairman of the Securities and Exchange Commission, said that if the industry “has any meaning in five and ten years, it will be within a public regulatory framework.”
Gensler told the Financial Times that cryptocurrency trading platforms should “talk to us” and “come in”.
Cryptocurrency trading platforms have grown rapidly in recent years, with New York-listed Coinbase making a profit of $ 1.6 billion in the second quarter of this year.
Despite their ever-growing presence, it is unclear which US regulator is responsible for overseeing cryptocurrency trading platforms. Gnesler previously asked Congress to create clear definitions of who should regulate the platforms.
The comments come as the city’s UK regulator, the Financial Conduct Authority, said it was unable to regulate the leading crypto exchange, Binance, due to difficulties in identifying UK-based companies within the group’s structure .
Two months ago, the FCA reprimanded Binance, saying it was authorized to offer financial services in the UK. Banks like NatWest, Barclays and HSBC have prevented customers from making transfers to Binance.