In this industry, you will find regulated and unregulated crypto exchanges. It is important to know which ones are and know how to evaluate the platforms. Sometimes it will involve a little bit of research and reading for some exchanges, but it is worth it. Especially if you are a person who plays with large capital. But even for ordinary users, it is good to know where you have yourself “protected” more and where you are not.
Before presenting you with a few regulated exchanges it is important for you to do simple research. Research on the licenses and the commissions. Don’t worry it is not so complicated as it sounds because you don’t need to know all of the regulating entities. You should also do research on the exchanges themselves. To know where are they located, opinions on the web and their level of communication with their users.
Remember even if an exchange is regulated it does not guarantee you 100% bulletproof security and protection.
Let’s start with what is the Securities and Exchange Commission.
An independent federal government agency – which protects investors while also maintaining order and function of the securities markets and easing the capital formation. If you want to have a more detailed explanation of what is SEC – you can read in Investopedia.
Let’s get to know some of the regulator’s commissions on different jurisdictions.
SEC – U.S. Securities and Exchange Commission in the USA.
CySEC – Cyprus Securities and Exchange Commission
FSA – Financial Services Authority of the UK
FSC – Gibraltar Financial Services Commission
CSRC – China Securities Regulatory Commission
Every country has its own regulatory bodies that regulate the financial markets. Therefore they regulate the exchanges and if an exchange wants to operate in a certain jurisdiction it needs to have the appropriate license. Keep in mind that different jurisdictions may have different regulatory laws and requirements. So if you have a license in one of those you don’t have the guarantee that you will be allowed to operate everywhere.
Now let’s jump to the exchanges which are regulated in different countries and are considered safer than the ones that are not regulated. Of course, this is a relative and don’t take it too seriously. Even the most regulated exchange and law-abiding may end up a victim of a hack and lose capital. Here are some of the biggest and well-managed and regulated exchanges.
Coinbase – A cryptocurrency exchange founded in 2012 by Brian Armstrong, located in San Francisco. It can operate in most of the US jurisdictions and Europe.
OKCoin – Founded in 2013 by Star Xu and based in Beijing, China. The exchange has been growing steadily during the years expanding to different jurisdictions like the USA.
Okex – The exchange exists as a side-platform of its parent company OKCoin. Aimed at serious traders implementing more advanced trading instruments and additional features.
Bitpanda – Located in Viena, Austria and serving over 1 million people since its inception in 2014 the exchange has proven itself as a big player. It can operate in the majority of EU countries.
CEX – Launched in 2013 as a cloud mining provider later became a fully-fledged exchange winning more than a million people to its side. Operating worldwide while offering a wide range of trading instruments.
Those are some of the regulated exchanges which we think are worth your attention. Of course, do your research before going to any exchange. Even with our reviews and opinions, you should always do your personal research. Licenses are not the best indicator of high security and stability. How the platform is handled and how they care for their users is more important.