Are encrypted and digital currency trading platforms at risk?

Some may be unaware of the impact and power of the supposedly encrypted currency trading platforms on the decentralized digital currency markets of the world.

Especially as the majority of trading volumes in the digital currency industry are encoded by small traders and speculators using central encrypted currency platforms such as the Binance platform. These platforms are the reason why prices are pushed to the highest levels in late 2017 by attracting enthusiastic investors.

The role of encrypted currency platforms is very important because if there are no platforms and no option at all as users can overcome the difficulties of dealing with decentralized platforms, or access to the market using cash, the digital currency community will remain a small community of technology professionals Information is exclusive.

A clear compromise: The central currency platforms that emulate standard trading platforms are the driving force behind digital currency market returns, but the digital currency market is sacrificing its original vision (eg, decentralization).

This is obvious to traders, but regulators have another look. For a long time, there have been encrypted currency trading platforms that claim to be completely systemic. However, the authorities have not traditionally been sure how to classify encrypted exchange platforms and did not want to risk setting rules that discourage innovation.

This change is reflected in the recent settlement between the Securities Commission, the US Stock Exchange (SEC) and Zachary Kobern, founder of EtherDelta. Cobren has recently agreed to pay more than $ 380,000 to the Securities and Exchange Commission (SEC) as the platform is unregistered, although he left the EtherDelta platform a year ago.

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Cobran should know that it may be a target, especially in the light of comments from the Securities and Exchange Commission earlier this year on how the agency intends to define ERC20 codes - the only assets listed on the EtherDelta platform.

The "EtherDelta platform" did not distinguish in terms of digital symbols listed, which were the motivation of the SEC's intervention. In June 2018, the chairman of the board, J. Clayton, was the first to say that currencies that mimic paper money such as bitquin and etherium are not securities, and that other symbols that act as digital assets are securities.

The SEC's reverse moves against the EtherDelta platform are just a glimpse into the whole industry of encrypted forex platforms. But does that mean it's over? Not likely.

The regulatory landscape has always been gloomy for Betquin fans and activists, and the trader now has a high degree of tolerance for negative news, market rumors and what is known as fear, uncertainty and uncertainty.

Although volatility has declined significantly since the beginning of 2018, the 24-hour trading volume remains steady at around $ 18 billion and has stabilized since April.

As a category of high-sensitivity assets for social media and news, it's also wise to search for phrases related to the encryption protocol on Google.

Summary of the discussion of the theme (decentralized platforms and central platforms) in the Gulf 365 Group

Invisiblely, the "Google Trends" chart reflects the price of the well-coded currency market, so it is good that searches for the word "crepto" have remained strong during the second half of this year. Much of the inexplicable enthusiasm for encrypted currency detection is that technical trends have indicated that the market is a potential bottom.

Other staples in traditional markets such as Stellar, Ethereum and EOS have also largely stabilized, prompting many to believe that unification is over. This raises the possibility of a sharp drop before the start of the bullish trend, reflecting higher past highs

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There are more encrypted currency trading platforms than ever before

 The rise in the number of encrypted forex platforms is also a sign of their indifference to SEC positions.

Hundreds of newcomers such as Liquid, BitForex and HotBit are moving forward although they now know that barriers to entry have increased, as well as many decentralized decimal trading platforms. This helps to avoid examples like EtherDelta easily: If you provide a market for digital assets, simply register with the SEC (Securities and Exchange Commission) or continue the exemption by consulting with the Commission.

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The EtherDelta platform was also decentralized and wanted to tell the new platforms something else: it does not matter if the platform works like a central organization or as a P2P-based decentralized network. Content Creator can always be held accountable.

When digital currency and encryption services become more common, it is also clear that operating platforms is a very profitable venture. Public expenditures associated with (pluchen) are much lower when compared to conventional asset trading locations, and customers from all over the world can easily service.

An adventurer (who wants to invest) can start and launch a new trading platform based in Malta, Japan, or any other spot regulated from abroad. However, if they serve clients in the United States, they are likely to face the SEC's wrath.

However, see the settlement reached by Koberne between EtherDelta and the SEC. With only $ 388,000 in penalties, it quickly became very easy, especially as the richest figures in the digital world were the owners of trading platforms and not talented or timely investors.

Unorganized trading poses a financial threat to traders everywhere, and although knowledge of encryption and the ability to deal with technology are considered sufficient to avoid risk, sometimes it is not possible. But why are unorganized encrypted forex platforms dangerous?

Their regulated counterparts must maintain appropriate trading conditions and use tools to protect investors and individuals.

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The rapid collapse could occur when the liquidity suddenly disappears, and this happened earlier this year on the GDAX platform when the etherium stock dropped from $ 320 to 10 cents (and then back up) in just a few seconds.

Unregulated trading platforms also allow fraud and fraud, pump and dump schemes and draw the ribbon without giving up. Market manipulation is a crime but without an organized presence to enforce it, users can not access their capital.

In addition to common methods such as binary authentication, experts and some other advice on how to protect investors from their portfolios. .

Obviously, while choosing a safe and orderly trading platform is vital, digital currency traders are still largely ignorant when it comes to protecting their money.

However, the efforts of the Securities and Exchange Commission (SEC) are good news for this particular reason. As it is expected that the standards of quality in the platforms approved, which will benefit the users.