Nasdaq only wants to start its own crypto exchange once the legal situation is clear
The influential American stock exchange Nasdaq only wants to launch its own crypto exchange as soon as there is more legal clarity about the cryptocurrency asset class, according to Vice President Tal Cohen.
In an interview with Bloomberg, Cohen explains that the retail investor side of the market is already quite saturated, and that there are enough trading platforms to cater to the needs of retail investors. The Nasdaq Vice sees no need here, rather his exchange wants to initially focus on the crypto custody service, which started operations on September 20th.
Cohen also reveals that his exchange is already working on other crypto services, including the ability to move and transfer crypto assets.
Although the world’s second largest stock exchange is not yet interested in launching its own crypto exchange in the US, Brazil’s Nasdaq has teamed up with major brokerage XP to set up a joint crypto trading platform in the South American country.
The crypto market is currently going through the usual price cycle, but American politicians are not yet ready to create a clear legal framework for the crypto industry and to give it firm guidelines.
Gary Gensler, head of the US Securities and Exchange Commission (SEC), recently recalled the risks associated with the young asset class, but the legislators have not yet brought themselves to pass clear legal requirements.
The SEC therefore sees itself forced to ensure a certain degree of regulation on the crypto market via criminal prosecution, but Senator Bill Hagerty of the Parliamentary Banking Committee is now demanding more legal clarity so that at least crypto exchanges are safe from the heavy hand of the SEC.
However, the lack of regulatory requirements not only prevents large players such as Nasdaq from entering the market, but also established crypto companies have to suffer from this circumstance again and again.