NASDAQ Plans To Launch Crypto Exchange But Needs Clear Regulations Before Doing So

The major stock exchange from the United States, NASDAQ has just made a statement in regards to exploring the cryptocurrency industry.

There were reports that NASDAQ was in the process of launching a cryptocurrency exchange. However, the NASDAQ exchange has shut down all such claims and rumors but it has indicated one thing.

Despite the denials, NASDAQ has hinted that it may be interested in adopting cryptocurrencies in such a way that it would launch a cryptocurrency exchange.

NASDAQ Waiting for Regulatory Clarity

According to NASDAQ, it is out of the question to launch a cryptocurrency exchange until they have a fair and well-defined regulatory framework surrounding cryptocurrencies.

NASDAQ officials have mentioned that they have no intentions of launching a cryptocurrency exchange for now. They are willing to give time to the process so a better and clear regulatory framework can be made surrounding cryptocurrencies.

As long as the policymakers do not come up with a regulatory framework that is clear and firm, they would not proceed with launching a cryptocurrency exchange.

Comments by Tal Cohen

Tal Cohen, the vice president, and an executive at the company made a particular statement about NASDAQ’s adoption.

According to the VP, the retail market is heavily invested in cryptocurrencies. To gain access to cryptocurrencies, retail investors are reaching out to exchanges.

There is a great number of retail investors interacting with cryptocurrency exchanges and the exchanges are also catering to their needs.

For now, their focus is to keep working on cryptocurrency custody services. They launched the particular services for investors back on September 20.

NASDAQ’s Plans Involving Cryptocurrencies

Cohen made no significant mention of the cryptocurrency exchange but he did talk about other projects they have underway that involve cryptocurrencies.

According to Cohen, some of the major products and services they are working on include transferring and moving of assets. They want to offer other capabilities to the users that involve digital assets but are not as risky as managing an exchange.

For now, NASDAQ is not going all in when it comes to launching a cryptocurrency exchange. Instead, it previously partnered with XP, a cryptocurrency brokerage in Brazil to launch a cryptocurrency exchange in the particular jurisdiction.

Cryptocurrencies have No Legal Clarity in the US

The policymakers in the United States are yet to come up with a policy that does justice to the cryptocurrency sector. For now, many cryptocurrencies are moving to and fro between the US SEC and the CFTC, which are the security and commodity regulators in the US.

Until either or both of the regulators come on the same page and work out a proper regulatory framework, launching a cryptocurrency exchange is out of the question.

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