FATF to Develop Common Rules For Exchanges

As reported, on June 24 members of the FATF will discuss the effectiveness of the rules, their applicability to new exchanges
13 June 2018   1173

The intergovernmental organization FATF (financial crimes task force), whose main activity is the fight against money laundering, plans to create a set of mandatory rules for crypto exchanges. This is reported by Reuters referring to the statement of an unnamed Japanese official.

According to the agency, on June 24 members of the FATF will discuss the effectiveness of the rules, their applicability to new exchanges and the principles of implementing requirements in countries where cryptocurrencies are banned.

At present, crypto exchanges are following optional recommendations, which imply the registration and disclosure of information about suspicious activity. At the same time, each state independently decides to what extent to regulate cryptocurrency companies.

Tthe government of Japan, which recognized bitcoin as legal tender in April 2017, intends to establish mandatory supranational regulations for the regulation of crypto exchanges no later than 2019.

Fake Trading Share to Reach 68%, - FTX Global

This figure, however, is significantly lower than what Bitwise's report and the discrepancy is explained by the difference in methodology
04 July 2019   978

The exchange of derivatives FTX Global and Alameda Research conducted a study that estimated the volumes of fictitious transactions (wash trades), presumably prevailing in many cryptocurrency exchanges.

The report says that 68.6% of trading volumes displayed by CoinMarketCap are fake. This figure, however, is significantly lower than what Bitwise Asset Management announced in March.

The discrepancy between the results in almost 30% of the authors of the new study is explained by the difference in methodology. So, FTX Global is sure that Bitwise used an too strict approach to data analysis, which is why a significant proportion of real trading volumes fell into the category of fake ones.

While our methods are not foolproof, we believe they paint the most accurate picture of the true nature of cryptocurrency trading volume that anyone has made publicly available as of yet.
 

FTX Global Team

The Alameda methodology involves verifying the authenticity of data on trading volumes on various exchanges based on six different parameters, including manual verification of information and comparison of order books.

FTX Global Website
FTX Global Website

In particular, the experts found out that some sites provided data on the volumes of foreign exchanges for their own, with a slight delay in time. Other platforms used more advanced techniques - for example, they introduced large fake volumes only against the background of many smaller orders, thus trying to hide the true state of affairs.

The main purpose of these tactics is to raise the platform higher in the CoinMarketCap rating, creating a false impression of its liquidity. It also sometimes allows for the ability to charge a higher listing fee.