Crypto exchanges are completely unregulated and are dominated by behavior that wouldn't be legal on actual security exchanges.
Because of this, a legitimate exchange would never really gain traction. Just look at Gemini.
Because of this, a legitimate exchange would never really gain traction. Just look at Gemini.
Cryptocurrencies are far from unregulated[1].
[1]https://coincenter.org/entry/cryptocurrencies-are-far-from-u...
>Coinbase, Inc. is licensed by the Virginia State Corporation Commission as a money transmitter, but such license does not cover the transmission of virtual currency
On top of that, we're talking about the big players like Bitfinex, who created USDT simply so they didn't have to comply with any sort of banking laws, let alone securities trading regulations.
Even so, these so called regulations you point to don't exist on the biggest exchanges like Bitfinex, Binance, or even Poloniex. Poloniex pulled out of states once licenses started being required to deposit USD.
Manipulating customer margin calls becomes trivial if you can look at the books and calculate if buying/selling x amount of the order book will margin call y amount of funds and decide its worth it.