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Is it possible to run a crypto exchange 'honestly'? Ie. Actually holding all the assets you claim to hold? I suspect the answer might be no... If you were
by pifm_guy 4y ago
Is it possible to run a crypto exchange 'honestly'?
Ie. Actually holding all the assets you claim to hold?
I suspect the answer might be no... If you were to set up an honest exchange today, you would be outcompeted by dishonest exchanges who spend all their customer deposits on marketing schemes, referral bonuses, liquidity incentives, etc.
- TedDoesntTalk 4y agoCoinbase
- imtringued 4y agoYes but the problem is that in these heavily regulated sectors it is impossible to build a startup organically. If there were carveouts for startups with low quantities per customer and low total volume then we would have seen a lot more regulated exchanges. Also, existing banks or exchanges must provide white label services to those startups because if there are only two companies that can comply with the regulations, then those must act as regulated utilities.