LONDON (Reuters) – Regulated financial exchanges are discussing how to capitalize on the growing interest in cryptocurrencies, according to a report released by the London-based World Federation of Exchanges (WFE) on Tuesday. However, the report also revealed that one-third of the surveyed exchanges had no plans to offer crypto assets.
The exchanges expressed concerns about the lack of uniform regulatory standards, market volatility, and potential cybersecurity risks associated with crypto assets, the WFE report stated. Out of the 29 exchanges that responded to the survey, 12 currently offer crypto-related products or services, while the remaining 17 do not provide any crypto offerings.
Of those exchanges not currently offering crypto assets, only seven have plans to introduce them in the future, while 10 have no such plans, the report added.
The cryptocurrency market experienced significant price drops in 2022 following collapses at top crypto firms such as FTX, resulting in substantial losses for investors. The incidents prompted increased calls for regulation from lawmakers.
According to the WFE, 38% of the surveyed exchanges have established or are planning to establish working groups dedicated to crypto-related assets or services. Additionally, just over a quarter of the respondents believe that crypto assets will become mainstream in the near future.
“Crypto is a top priority for all our members, and we are in constant dialogue with them to explore the new opportunities in this field,” said WFE CEO Nandini Sukumar.
Traditional financial institutions have long been interested in utilizing blockchain technology, which underpins cryptocurrencies, for the issuance and trading of traditional financial assets. However, widespread adoption of the technology has yet to occur on a large scale.
Yesterday, the London Stock Exchange Group announced its investigation into using blockchain for building a system to facilitate raising and transferring capital across asset classes, although it clarified that this would not involve incorporating any crypto assets.
(Reporting by Elizabeth Howcroft; Editing by Tom Wilson and Jan Harvey)
Credit: The Star : Tech Feed
