FTX founder urges regulators to create a unified cryptocurrency framework

FTX founder urges regulators to create a unified cryptocurrency framework

Sam Bankman-Fried, the founder and CEO of crypto exchange FTX, would have called on regulators to create a single framework for digital assets at the Asian Financial Forum, an event organized by the Hong Kong government to highlight new opportunities within the economic landscape of the region.

The businessman pointed out that, Instead of focusing on determining whether assets are securities or not, regulators should focus on consolidating regulations and creating a cryptocurrency rules manual.

Bankman-Fried also noted that a framework that focuses on fraud prevention and disclosure may be more important than labeling assets as securities or not. While the FTX CEO did not specify which regulatory bodies he was calling, many regulators around the world are focused on classifying whether tokens are securities or not. However, he is convinced that this will not protect investors.

Additionally, the cryptocurrency billionaire also highlighted how Regulatory frameworks exist for other asset classes, and he noted that the same should be done for digital assets.

This isn’t the first time the exchange’s young founder has engaged with regulators. In December 2021, Bankman-Fried, along with other executives from prominent cryptocurrency companies, were called to attend a committee hearing, where they urged US regulators to provide regulatory clarity on digital assets.

Meanwhile, many experts expect big advances in regulatory standards in 2022. In a Cointelegraph survey, Hatu Sheikh, co-founder and chief strategy officer of DAO Maker, said that regulators “realize that the industry is maturing and is currently even too big to have a blanket ban imposed. ”Sheikh also mentioned that regulations are necessary, while restrictions are not.

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In the same survey, EasyFi Network CEO Ankitt Gaur said decentralized finance (DeFi) may be a focus of regulation in 2021. “DeFi is slowly making its way into the mainstream and regulatory talks are emerging”Gaur said.

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