The Legalities Of Crypto Trading: 5 Things To Check
Aug 8, 2021
Whether you HODL or SODL, your crypto trading journey is an important part of your financial life. There are many crypto trading strategies and approaches to learn from.
Your First Trade
Before you place your first trade, buy your first cryptocurrency, or sell your stash, there are 5 things to check regarding the legalities of your crypto trading platform. MEX Digital explains:
Regulation and Governance
Don’t be hoodwinked– proper regulation and exceptional governance is important. Your selected crypto trading exchange must be registered, regulated, and fully compliant with all legal requirements.
Don’t be afraid to ask for information related to your selected crypto trading exchange registration. Legitimate crypto trading exchanges are always more than happy to provide confirmation of their registration and regulatory compliance.
MEX Digital is fully regulated through the Australian Securities Investment Commission (ASIC) and is registered with The Australian Transaction Reports and Analysis Centre (AUSTRAC) for trading digital assets as a Digital Currency Exchange (DCE).
Remember: regulatory requirements may differ from region to region, so be sure to do your homework to fully understand the requirements for your crypto trading platform’s jurisdiction.
There are a lot of questions about cryptocurrency and taxation.
Do your crypto holdings supplement your income? What happens when you sell some of your cryptocurrency? How does it work when it’s tax season? Be certain of the tax implications related to your crypto trading journey. When you need financial advice, consult your trusted, registered financial advisor. Don’t take tax or crypto trading advice from someone who isn’t qualified to provide it.
Your Trading Experience
Choosing a crypto trading exchange can seem overwhelming at first. Choose a crypto trading exchange that:
- Supports your crypto trading journey: Your selected crypto trading exchange should provide useful resources, user education, and up-to-date information on the cryptocurrency markets.
- Makes it easy to trade crypto: A crypto trading exchange that’s confusing to use is not the one for you. Your crypto trading exchange should have an easy to use interface, and help you along the way.
- Provides 24/7 customer support: Customer support is essential. You need on-the-fly, responsive customer support. You need your problems resolved quickly and effectively. MEX Digital provides easily accessible support channels, 24/7.
Legislation in your Country/Region
As cryptocurrency’s influence and market share grows, governmental responses to the industry change over time. In some regions of the world, it is currently illegal to trade in crypto. In other regions of the world, moves are afoot to make cryptocurrency legal tender. Understanding the legislation that applies to your country and region is important.
The Crypto Community
A well-reputed crypto trading exchange supports and interacts with its user base. Building a community of traders around itself, a good crypto trading exchange will find itself highly recommended among them.
Of course, you can’t rely on word of mouth for your recommendations, but the surrounding crypto community could help answer a few important questions for you. The crypto community that is attached to your chosen exchange is usually found online, or through communication channels like Telegram.
Find out if there are any official community channels for your chosen crypto trading exchange, and join them.
Start your cryptocurrency journey with MEX Digital. Remember, proper diligence and sound judgement should be used in evaluating the risks associated with these activities. Trading cryptocurrency carries significant risk and losses can exceed deposits. Refer to our Terms and Conditions and disclosure material.