The founder and CEO of the FTX exchange asked regulators to create a unified regulatory framework for digital assets.
Sam Bankman-Freed, founder and CEO of cryptocurrency exchange FTX, urged regulators to create a unified framework for digital assets at the Asian Financial Forum, an event hosted by the Hong Kong government to highlight new opportunities in the region’s economic landscape.
The businessman noted that now the regulators of many countries are busy trying to figure out whether this or that digital asset is a “security” or not. While labeling will not protect investors, regulators prefer to do just that.
Bankman-Fried stressed that creating a unified structure focused on information disclosure and fraud prevention will play a much larger role for both courts and investors. He did not mention which specific regulatory bodies are in question, but he is confident that such actions are not able to protect investors.
In addition, the cryptocurrency billionaire drew attention to the fact that other asset classes have had their own regulatory framework for a long time and it will not be difficult to do something similar for cryptoassets.
The FTX founder has a long history of working with regulators, for which he received a negative assessment from the crypto community, which mostly advocates anonymity. Nevertheless, the cryptocurrency exchange has always cooperated with the police and disclosed internal data if it was required by investigations related to it.
At the end of last year, a businessman and several other leaders of other crypto exchanges were able to express their views on the movement of the industry at a hearing organized by US regulators. Each of them pushed for clearer rules for the industry, intending to keep their users safe.
Meanwhile, 2022 has every chance of becoming the year of “regulations”. Many countries have already made headway in this direction, but a few have only laid the foundation for future laws. At the same time, the industry continues to mature and bans alone, as in China, will not work.
During the forum, FTX founder Bankman-Fried also gave his take on central bank digital currencies (CBDCs).
The use of the digital yuan in China has expanded to 140 million residents and cumulative transaction volume reached 62 billion yuan ($ 9.7 billion), Mu Changchun, head of the Digital Currency Research Institute at the People’s Bank of China, said in November.
The businessman stressed that sovereign digital currencies will not compete with cryptocurrencies or stablecoins, which are tokens backed mainly by the US dollar, since central banks have only given banks access to them.
“Central bank digital currencies digitize the existing fiat currency system, and it is not open to direct participation from its users,” he said.
If we talk about Russia, the trend in the regulation of the crypto sector is more like an attempt at a ban. On the one hand, transactions sent to the addresses of crypto-exchanges are carefully monitored, and on the other hand, numerous pyramids and fraudulent schemes are not suppressed in any way. Last year, the trial of Finiko distinguished itself, but how many other date-like organizations are there and are deceiving people every day?
As Sam Bankman says, regulators should first of all try to protect investors by adopting more and more laws, and not try to “curse” and ban, while not understanding the topic and fearing for the life of their own national currencies.
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