By Richard Hines
The Deputy Director General of the EU, Alexander Jour-Schroeder has concluded she doesn’t see the FTX exchange collapse as a colossal failure of the crypto space.
She also pushes for the swift approval of updated regulations in place for the crypto community.
Is FTX Crash A Determining Factor For Crypto’s Future?
In the European Union Parliamentary hearing, Schroeder stated that she doesn’t see the FTX meltdown as a doom or end of crypto. Schroeder stated that the FTX crash should be blamed on the CEO, Sam Bankmam Fried and not blaming it on crypto and the technology behind it, Blockchain. It’s important to note that the most recent bitcoin crash sparked another bear market rally and deepened the crypto winter, which in turn had an impact on the FTX exchange’s finances and led to its liquidation.
The crypto lending platform that was directly exposed to FTX, BlockFi also experienced liquidation, stopped withdrawals, and recently filed for chapter 11 bankruptcy protection in the wake of this crash and Sam Bankman Fried’s bankruptcy filing.
The EU Votes For New Crypto Law To Take Effect 2024
A ground-breaking update to the law governing the trading of crypto assets in the market has been voted upon by the European Union and is scheduled to take off in 2024.
With this new development, the European Union will be in the spotlight for regulating the now-catastrophic cryptocurrency industry.
Patrick Hansen, a crypto guru, took to Twitter on Tuesday to provide an update on the hearing between FTX and the European Union Parliament; also discussing the verdicts and their potential impact on the EU.
During the meeting, Schroeder emphasised the importance of MiCA implementation. MiCA (Market in Crypto Assets), is a set of regulations put in place to protect the cryptocurrency space.
According to Schroeder, it was critical to finalize this implementation by voting for or against this development.
She went on to say that some of the problems that led to the FTX meltdown were caused by poor record-keeping and a failure to separate client activities from personal activities.
Schroeder also emphasized the weight of this collapse while not viewing them as a blockchain but as a firm in their own right, stating that the failure of the FTX exchange does not imply the failure of the entire crypto sector.
She also stated that the rules that would help effectively regulate these crypto exchanges should be approved as soon as possible.
According to reports, there was a strong and massive pullout from exchanges to personal wallets recorded following the FTX crash, as most feared another occurrence of this crash in the near future.