OKEx Announces the Establishment of SRO, a Regulatory Body for Crypto Exchanges

OKEx, a leading crypto exchange, announced during the DELTA Summit in Malta that it is establishing a Self-regulated Organization (SRO). SRO aims to standardize exchange policies and practices. 

In a press release issued by the company representatives, OKEx is encouraging exchanges as well as market participants to take part in the initiative. The objective of requesting several participants to take part is that it will help in collecting as many ideas as possible that will foster better operations in the industry. 

SRO will serve a similar purpose as FINRA, the regulatory body for the World Federation of Stock Exchanges. As such, SRO will remain an independent entity. In addition, it will be a membership-based organization that will not take sides irrespective of its size or jurisdictions. 

Initiative’s Purpose and Objective

As a team, all onboard exchanges will collaborate to outline and adopt standards that will serve three primary purposes. These purposes include promoting digital asset adoption, educate governments and regulators, as well as develop metrics and criteria for trading and listing on the exchanges. 

As indicated by OKEx Head of Operations, Andy Cheung, 

“The only way for exchanges to grow and deliver impact is by joining together to develop practices and policies that will set a global standard and adapt to regional regulatory frameworks.” 

The emphasis lies in joining hands to effectively set standards with the objective of ushering in financial security for the millions in the industry. It is only when exchanges clarify their operational practices and procedures will they cooperate with governments and encourage innovation within the industry. 

Contributing towards the matter, Head of International Strategy and Innovation at OKEx, Enzo Villani, had the following to say after indicating that there have been similar initiatives by other organizations. The differentiating factor is that this initiative will not only focus on one jurisdiction.  

“We applaud their effort, and OKEx will determine which ones are important to our customers. Our initiative is focused on creating a global SRO that can provide international standards. We are in discussions with other exchanges and market participants to join us in formalizing a global SRO.”

Last week, Coinbase announced that they have teamed up with other exchanges like Kraken to launch a Joint Crypto Ratings Council. The council will provide clarification on which tokens will be tradable without the intervention of US Federal Laws.