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Crypto exchanges act like brokers and exchanges. They match orders and they also hold client money.
by NovemberWhiskey 4y ago
Crypto exchanges act like brokers and exchanges. They match orders and they also hold client money.
- JumpCrisscross 4y ago> match orders and they also hold client money Matching orders is what brokers canonically do. Exchanges came about to consolidate their activity. There is nothing resembling a true exchange in the crypto space.
- pjc50 4y agoOK, so it's bucket shop and an exchange. With a side order of boiler room.
- NovemberWhiskey 4y agoThat's fair - in any case, the segregation of customer cash and securities from proprietary activities is a (the?) fundamental obligation of broker-dealers.
- cortesoft 4y agoIsn’t the blockchain itself the “true exchange” of the crypto space?
- NovemberWhiskey 4y agoNo; that's a ledger. In the context of traditional securities flows, that's more like the post-trade process and share registration etc. If you think about Bitcoin; the blockchain can literally only tell you about how Bitcoin was transferred between addresses.
- mianos 4y agoThere are multiple exchanges in the crypto space. I spent 20 years working in conventional exchanges and where I work now is very much the same. This said, we don't appear on the radar, as a conventional exchange is not as highly profitable because they can't make use of client funds or holdings. (We offer a few other unexciting institutional services that make more money than the exchange). One day people will realise the value in conservatism in financial markets.