ASIFMA released a report outlining best practices for digital asset exchanges developed by ASIFMA, its membership and market participants including professional advisors, technical experts and exchanges. The report was developed to guide digital asset exchanges towards international best practices in eight key areas: (1) listing process, (2) market manipulation, pricing and liquidity, (3) regulatory considerations: licensing and authorization, (4) anti-money laundering and know your customer, (5) custody, (6) cybersecurity, (7) risk mapping, and (8) engagement with external stakeholders.
Certain jurisdictions have already begun to regulate digital asset exchanges. However, many transnational bodies and regulators are still debating the most effective regulations. As best practices and laws continue to develop, ASIFMA ( Asia Securities Industry and Financial Markets Association) plans to contribute to the dialogue on this important part of the digital economy. In addition to sensible regulation, the development of infrastructure similar to traditional markets is needed. These include systems related to custody, screening, and operational risk control. There also remain concerns about the reliability of reporting figures and information asymmetry.