The creator of FTX calls on authorities to establish a common crypto framework
The creator and CEO of the FTX exchange have urged authorities to establish a unified regulatory framework for digital assets.
Sam Bankman-Fried, the founder and CEO of crypto exchange FTX, allegedly urged authorities to establish a unified framework for digital assets at the Asian Financial Forum, an event hosted by Hong Kong’s government to promote new economic potential in the area.
Instead than focused on assessing whether assets are securities, the businessman said that regulators should concentrate on simplifying rules and developing a single rule book.
Bankman-Fried also said that a framework centred on transparency and fraud prevention may be more essential than asset labelling. While the FTX CEO did not name the regulatory organisations to whom he was referring, numerous regulators worldwide are focusing on tokens being classified as securities. He is confident, however, that this will not safeguard investors.
Additionally, the crypto millionaire emphasised the regulatory frameworks in place for other asset classes, stating that the same should be implemented for digital assets.
This is not the first time the exchange’s youthful creator has had to deal with authorities. Bankman-Fried, along with other CEOs from leading crypto businesses, was summoned to testify before a congressional committee in December 2021, where they asked US authorities to offer regulatory clarification on digital assets.
Meanwhile, several analysts anticipate significant regulatory standard breakthroughs in 2022. According to a study, Hatu Sheikh, co-founder and chief strategy officer of DAO Maker, authorities “understand the sector is evolving and is now even too large to be subjected to a blanket ban.” Additionally, Sheikh said that rules are required, but limitations are not.
Ankitt Gaur, CEO of EasyFi Network, said in the same study that decentralised finance (DeFi) may be a regulatory emphasis in 2021. “DeFi is gradually finding its way into the mainstream, and discussions about regulation are beginning to emerge,” Gaur added.