TL; DR Breakdown
- FTX submits crypto regulation proposal before Congress
- FTX wants crypto exchanges to exhibit transparency
- The exchange wants a regulation that will protect customers
Crypto regulation has continued to become one of the most tedious aspects of the market that governments worldwide are worried about. This is because the crypto market is huge, and some suspect that they might not regulate it properly. Most countries are in this position with the United States as they continue to look for the right way to regulate the crypto sector. However, FTX, a crypto exchange based in the Bahamas, has released a ten-point proposal to push regulation in the right direction.
FTX calls for transparency among crypto exchanges
With the United States Congress looking to make a headway with the crypto regulation cause, the United States Congress invited major crypto big wigs to give an idea on how the market can be regulated. The policy considers all the choices that crypto exchanges will make in the market and how they intend to implement them. In its ten bullet points for crypto regulation, FTX floated the idea for regulators to view marketplaces dealing with spot and derivatives products the same way.
In its explanation, FTX suggested that a type of market should not change the bigger curse of regulation as all market types in the sector needs to be regulated under one umbrella. FTX also said that crypto entities should be given leeway in carrying out a more direct approach to their membership. This means that they want dealers of digital assets and users to carry out trades without the third parties poking their nose in their affairs.
FTX says crypto regulation should protect customers
Another good bullet point cited issues related to transparency on crypto exchanges and investments. FTX said that users must always know how their assets are being held and how crypto exchanges will tackle frauds and hacks when the time comes. Furthermore, FTX wants regulators to provide a better framework that will be used to report user activities on their platforms.
FTX notes that the new framework must provide adequate protection for clients while eliminating any issues surrounding market manipulation. FTX also sees the need for stablecoin regulation as it maintains that platforms should explain which coin fits the criteria for certain operations. Back in August, FTX announced that it would streamline its KYC verification. The new KYC verification requires users to input their phone numbers, helping FTX know where the user is located.