Cryptocurrency exchanges Poloniex and KuCoin have teamed up for joint research and large-scale development of the cryptocurrency industry amid increasing regulatory requirements.
Exchanges will begin to conduct research and development collaborations related to cryptocurrency trading, liquidity provision, product iterations, and mining pools using Proof-of-Work (PoW) and Proof-of-Stake (PoS) consensus methods. According to the management of both sites, instead of competing, it is much more effective to combine efforts to strengthen their positions in the market and develop the cryptocurrency sector as a whole.
“Given the difficult political and economic situation in the world, institutional and even individual investors have a difficult time. They are forced to look for a balance in order not to fall under the influence of new market risks, and at the same time receive long-term profits. Hopefully this partnership between KuCoin and Poloniex will be a landmark event in the digital currency industry, ”said Johnny Lyu, CEO of KuCoin Global.
Shelley Wu, VP of International Relations and Marketing at Poloniex, added that the industry is currently fiercely competitive, with exchanges competing for user preferences, not to mention pressure from various regulators. Several cryptocurrency exchanges have already closed in Brazil this year due to new tax rules. In addition, Venezuelan traders were recently blocked from accessing Coinbase due to US sanctions.
Shelley Wu believes that in such conditions, exchanges should take a different approach and start cooperating, because the sites pursue common goals. As a reminder, in April KuCoin partnered with the Singaporean Onchain Custodian and the Lockton insurance company to provide additional security for user assets. In the same month, KuCoin announced the development of an Enterprise Currency Desk platform for OTC cryptocurrency trading.
