Choosing a cryptocurrency exchange platform can seem complicated. Security, reliability… How do you know who to trust? There are certain indicators that can help you assess the credibility of a service. Here are three signs to look out for.
The platform and its regulation
Several organizations issue licenses for crypto platforms such as Bitpanda. Their role is to verify compliance with financial rules and protect users.
- France: Cryptocurrency exchange platforms must obtain Digital Asset Service Provider (PSAN) status from the Autorité des Marchés Financiers (AMF).
- United States: The SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission) supervise certain platforms. FinCEN (Financial Crimes Enforcement Network) enforces rules against money laundering.
- European Union: MiCA (Markets in Crypto-Assets) establishes a common regulatory framework. Each country may also have its own authorities, such as the AMF (Autorité des marchés financiers) in France.
- United Kingdom: The FCA (Financial Conduct Authority) regulates platforms and imposes strict controls.
Checking whether a platform holds a license from these bodies is a good indicator of reliability and security.
Click here to read the entire article on Luxus Magazine
Featured Photo: © Art Rachen/Unsplash
