Popular crypto platform, FTX exchange, has issued a 10-point crypto guideline via a lengthy blog post, which the US legislature can modify as they debate and develop their crypto regulation policy. Part of the guideline suggests that crypto exchange should choose a uniform market structure that would then be implemented in all country states.
Essential Extracts From FTX’s Guidelines
FTX issued its guidelines following a meeting with the house committee chair on financial services alongside the top executives of other top crypto platforms. The main agenda of the meeting was on the way forward for the digital asset and finance industries. Part of the guideline also stated that the spot and derivative markets should be subjected to the same regulation.
“The basics of regulation shouldn’t be modified because a segment of the market is categorized in a certain way. The market as a whole should be subjected to the same guiding principles.” The exchange further argued that parties should be allowed to get involved with trades without needing the consent of a third party.
Another point raised by FTX is the issue of transparency from asset custodians. The exchange noted that the regulation must demand increased transparency from asset custodians. It states that these custodians must clarify how their custodial services will deal with fraud and theft-related issues when they crop up.
The exchange also remarked that there should be a guideline to report transactions, especially with time stamps. Thus, customers can be assured that their interests are protected, and market manipulation can be eliminated or significantly reduced.
Recommendations For Stablecoin Payment Support
FTX also made recommendations on regulations for issuing stablecoins. “Exchanges that support payment settlement with stablecoins would need to submit detailed reporting on the criteria with which it allowed such stablecoins to be used for such purposes.” A few months ago, FTX boss, Sam Bankman-Fried, disclosed that the exchange is taking its KYC tools more seriously since a well-structured KYC would be critical to the wider adoption of the crypto sector.
One of the additional features of FTX’s KYC would be confirming a user’s territory using their registered phone contact. “The old KYC tool confirmed user identities through their submitted phone numbers. The updated KYC would mandate such users to perform some verification with their phone numbers before they can utilize some of our site’s features such as accessibility to the futures market.”
Authorities’ Differing Crypto Regulation
As nations seem not to grasp the crypto world fully, they are approaching its regulation differently. Most governments are adopting rules from nearby countries but with slight modifications. While a few of them are proposing regulation on specific aspects of the crypto industry and some others are attempting to develop a regulatory framework that covers the entire crypto industry.
Even policymakers in the same nation do not have a familiar voice on how the market should be regulated, especially concerning which financial agency should be performing oversight functions on the crypto industry. Nevertheless, policymakers need to realize that they need to collaborate with the private sector before devising any workable regulation for the crypto industry.