The era of trading cryptocurrencies as non-securities seems to be coming to an end, according to Itai Avneri, Chief Operating Officer at INX. As more exchanges face legal implications in the United States, Avneri believes that a significant amount of coins offered for trading on crypto exchanges is one of the core reasons for these legal issues. He states, “You cannot continue to trade cryptocurrencies as if they are not securities. Those days are over.”
In comparison to major exchanges like Coinbase and Binance.US, INX has taken a more conservative approach by only listing five cryptocurrencies since its establishment in 2017. The listed coins include Bitcoin, Ether, USD Coin, Avalanche (AVA), and Litecoin. Avneri points out that INX chooses the listed cryptocurrencies carefully, emphasizing that their primary focus is on digitized or tokenized securities.
As thousands of cryptocurrencies currently exist, they will need to find a way to be converted into securities and be listed on platforms like INX. Avneri adds, “They need to find a way to be listed and to properly register with the SEC as securities.”
The statements made by Avneri are in line with similar comments from Gary Gensler, U.S. Securities and Exchange Commission chair, who argued in September 2022 that most cryptocurrencies are securities. On the other hand, Gensler also noted that certain crypto markets are not securities, including coins like Bitcoin, Ether, Litecoin, Bitcoin Cash, and others.
While the debate around cryptocurrencies’ classification as securities continues, it is essential for platforms like INX to adapt and stay compliant with regulatory guidelines. The future of the crypto market may involve a more significant focus on the categorization of cryptocurrencies within the larger financial landscape, as both regulators and industry participants search for a balance between innovation and financial security.
Source: Cointelegraph
