Crypto exchange FTX’s founder and CEO, Sam Bankman-Fried, recently addressed the Asian Financial Forum. In the address, he brought out that it was time that regulators drew up a single framework for crypto assets. The forum was organized by the government of Hong Kong. The aim of the forum is to turn the spotlight on the economic opportunities in the region.
FTX’s CEO recommended that the regulators should not be focusing on determining if the crypto-assets should be treated as securities. They should instead create an umbrella regulation for crypto.
Any regulation devised should focus on preventing fraud – rather than sweating over the classification of assets as securities. His statements come in the backdrop of many regulators designating tokens as securities. He was of the opinion that such moves would not guard investors against fraud. He further added that just as other assets had regulations, similar regulations should also be brought in for crypto assets.
This is not the first instance that the founder of an exchange is calling out regulators for the lack of regulations. In Dec 2021 too, Bankman-Fried, together with founders of other exchanges, had requested US regulators to act on providing clarity on regulations for digital assets.
Crypto analysts and experts believe that regulations can be expected to be put in place in 2022. The crypto space is growing and the need for regulations need not be overemphasized.
The CEO of EasyFi network felt that as DeFi is gradually becoming mainstream, regulators should also focus on regulating that space. He said he was hopeful of action since conversations regarding that are increasing.