Exchanges have taken a crucial position as the entry points for users into the crypto market space. But this function is also evolving alongside how exchanges operate and the kind of digital asset they support.
The future role of digital exchanges was among the hot topics of discussion at the CoinGeek London 2020. A diverse panel of leaders from different circles in the financial industry assembled at the conference to debate the current state of bitcoin, how it affects the current state of digital asset exchange and the direction henceforth.
The panelist included Roy Bernhard who is the chief visionary of the Bayesian Group, Shawn Dorsch the founder and president of Clear Markets, Teong Hng the director of Global Alpha Trading in Hong Kong and Gabor Nagy business development director at OKCoin Europe. Moderating the panel was Jerry Chan, Manager of Bitcoin Association in Japan and South Korea.
The Importance Of Education And Communication
There is a great amount of FUD propagating in the industry probably due to the infancy of the crypto industry. People have capitalized on this to serve their own selfish agendas. The result has been an incredible amount of disinformation to the general public which has proved to be a major challenge for digital asset exchanges leaders in regards to mitigating and steering the company in the right direction.
Nagy asserted the importance of education and establishing a marketing team with the task of relaying the right amount of information to customers. He added that it was rather crucial for exchange teams to inform customers first hand of what is actually happening from the inside than getting the information from other sources.
Regulation Remains The Biggest Challenge
in addition, with proper communication and education, it would be easy for governing bodies too to set regulations. Bernhard reiterated the role of communication in the big picture. He added that it would lead to more confidence in setting regulations that would stabilize the industry and open opportunities for growth.
The sentiment however didn’t change the opinion of the overwhelming consensus that regulations are currently the biggest challenge facing digital asset exchanges.
Remain Legally Compliant
Being legally compliant is the only way of surviving and integrating into the real world. Hngs backed this saying that digital asset exchanges have to be “whiter than white” to survive in the industry. While regulatory frameworks are in development, exchanges will need to adhere to the current laws or face dire consequences.
It was agreed that exchange leaders also need to proactively drive solutions in order to lobby regulators or otherwise be imposed with unnecessary regulations as a result of the ignorance by governing bodies.