The article emphasizes the importance of regulated derivatives in the maturation of the crypto market. Currently, a majority of crypto transaction volumes occur in unregulated or lightly regulated jurisdictions, exposing investors to risks like market manipulation and fraud. Regulated exchanges in Europe offer pathways for meeting the demands of risk-averse institutional investors who prioritize compliance, security, and regulation. Derivatives markets are crucial for managing risk, hedging, and attracting sustained institutional participation. To provide security and compliance for large financial clients, exchanges must obtain a MiFID license in the EU. Compliance, custody, and transparency are essential for institutions to gain confidence in the crypto market. The article encourages exchanges to prioritize regulated products and secure custody to offer comprehensive trading options for institutional investors in the future.



Other News from Today