Crypto Exchange FTX has Proposed a Solution to Regulate Cryptocurrencies

Crypto Exchange FTX has Proposed a Solution to Regulate Cryptocurrencies

December 24, 2021 0 By Keith Jacobs

FTX is a cryptocurrency enterprise operating out of the United States. The exchange has recently published a detailed charter addressing the issue of financial regulations for similar enterprises in the industry. The charter discusses ten important points. However, the crypto market experts emphasize one point as being crucial.

The FTX exchanges suggested that changing the way that the US regulators approach the cryptocurrency market is going to have better results. The crypto organization further added that if the regulators appoint a singular primary regulator to the crypto enterprise it will simplify and improve the process.

FTX is Ready to Collaborate with State Regulators

The FTX regulatory suggestion charter has discussed many important points in detail. The charter deals with the issues like custody of assets and risk assessment criteria for cryptocurrency enterprises. Furthermore, the FTX document also sheds light on the importance and implementation of KYC (Know Your Customer) and AML (Anti-money Laundering) protocols for the digital asset markets.

However, another important point mentioned in the charter relates to stablecoins. FTX suggests that the Federal institutions can keep a record of the registered stablecoin reserves claimed by a crypto exchange. Furthermore, FTX claimed that an independent financial firm can conduct regular audits to ensure regulatory compliance.

FTX operates both as a spot and a derivatives exchange. Therefore, the cryptocurrency organization has called for a vote grant that allows such organizations to pick one single regulatory body to administrate and report to. Coinbase has submitted a similar application to the government earlier in October.

However, Coinbase suggested that the choices could be left to the government to appoint one regulator per crypto enterprise. Executive leadership of Coinbase and FTX are expected to testify in front of Congress on Wednesday. It is not clear that if the point is going to be added to the agenda of the congressional hearing at this point. FTX is the 5th largest exchange by market cap with a $4 billion trading volume and the 2nd largest spot exchange with $8 billion open interest.