Are market takers and market makers subject to different regulations in the cryptocurrency industry?

1 answers

• Atasha SmithMar 16, 2025 · 4 months ago
  Yes, market takers and market makers in the cryptocurrency industry are subject to different regulations. Market takers, who buy or sell assets at the prevailing market price, are generally not subject to any specific regulatory requirements. They can freely participate in the market without any additional obligations. On the other hand, market makers, who provide liquidity by continuously quoting bid and ask prices, may be subject to additional regulations. These regulations are designed to ensure fair and orderly markets, prevent market manipulation, and protect investors. Market makers may need to register with regulatory authorities, meet certain capital requirements, and comply with reporting and compliance obligations. It is important for market makers to understand and comply with the regulations applicable to their activities to operate legally and maintain market integrity.
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