Cryptocurrency Exchanges Should be Self Regulated - US Think-Tankhttps://cryptovest.com/news/cryptocurrency-exchanges-should-be-self-regulated---us-think-tank/
I agree with this sentiment, but what it will take for self regulation of this industry is a group of highly motivated individuals to get the ball rolling. What better place to get the brainstorming started than right here with the DNotes community?
First we are going to need to draft up policies, guidelines, and standards that the entire industry agrees to abide by. For those who are unfamiliar with these concepts, here is a great breakdown:
https://frsecure.com/blog/differentiating-between-policies-standards-procedures-and-guidelines/Procedures are decided by individual exchanges in house, but we can start a list of proposed policies, guidelines and standards that will help keep cryptocurrency innovative, competitive, safe, practical, and ethical. Add to this list of suggestions as you see fit.
POLICIES-Universal know your customer policy on transactions involving large sums of money
-Abide by the laws in your jurisdiction(s) of operation or make a good faith attempt to do so if operating in a new sector that is devoid of applicable legal framework (eg. ICO)
-Customer funds may not be traded, sold, or transferred (without good reason and due care) unless these actions are initiated by the customer who owns those funds.
STANDARDS-Minimum fractional reserve requirements that must be met by all institutions who practice fractional reserve banking schemes
-Quantification of usury as a percentage and condemnation of its practice
-Transparency in listing fees and maintenance costs
-Truth and transparency standards in advertising
-Loan screening/background checks above a certain dollar value threshold
GUIDELINES-Offer responsive customer support
-Provide business credentials and contact information to your customers
-Report suspicious activity to the proper authorities