The evolution of crypto exchanges — What’s next for the industry

[Cordillerabit]

From what started as something of a “technological experiment” with Bitcoin (BTC) over a decade ago, the crypto asset industry has become a significant driver for change in global financial markets. Cryptocurrency exchanges started as a means to enable crypto enthusiasts to trade digital coins outside the traditional financial system on a decentralized and largely autonomous basis.

It is likely that combined with regulatory recognition and development of digital market infrastructures, acceptance of essential Anti-Money Laundering practices, investment in security protection systems, and recognition of investor protection measures will see these businesses continue to expand and potentially merge or compete on an even footing with existing regulated marketplaces.

The success of these platforms in allowing an unregulated free-flow of value across borders has unsurprisingly resulted in interest from governments and regulatory bodies. Initial skepticism was replaced by concern over weaknesses in relation to AML, fraud and investor protection measures. As crypto exchanges have improved their systems to meet AML and investor protection requirements, there is a begrudging recognition that these platforms have brought much-needed modernization and democratization to a market that has generally been seen as remote and privileged.

Crypto exchanges have provided 24-hour, global access to trading venues with participants eligible from all walks of life and able to participate directly through accessing online trading tools and graphics, which have historically been available almost solely to a limited set of professional investors.

Source: https://cointelegraph.com/news/the-evolution-of-crypto-exchanges-what-s-next-for-the-industry