Quote:
Originally Posted by afc wimbledon
I also dont see how you regulate the exchange without regulating the coin itself, no anonymity, full taxes, full tracking of the coin as it moves all of which slows the speed of transfers down to basically ordinary bank transfers and knocks away a huge part of the advantage of crypto in the first place
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Just make them follow similar rules to brokerages, and that would fix most of the issues. If they take peoples' cash, they have to segregate it. And any funds in crypto have to be owned by the customer, not the exchange (similar to securities).
Granted, removing a lot of the shady practices might make these things less viable, or make it uneconomical to have Western-domiciled exchanges. But so what?
And if you're worried about government expenses related to that, the costs would fall on the exchanges. They would have to pay an independent accounting firm to audit their finances to ensure they were following the rules.