FTX, a giant in crypto exchanges, has published a series of 10 proposals to be utilized by the regulators of the crypto market within the United States to regulate the field of digital assets. In the latest blog post, proposed rules were mentioned by the exchange as the chief principles of FTX for crypto-trading venues’ market regulation. The Initial of them contains a primary regulator of the market to be responsible for the crypto assets’ listings in derivatives and spot markets. The company states that the derivatives and spot markets (being dependent on several regulatory programs) create sub-optimal and insufficient market structures.
It adds that the firm proposes a substitute regulatory method to be a solution with which the market operators will be capable of entering a unified regulatory era for derivatives and spot marketplaces via a primary regulatory model. Additionally, on the list of FTX, there are some practices mentioned which relate to the crypto assets’ custody on the consumers’ behalf. The exchange mentions that an additional disclosure should be provided regarding the procedure of handling the funds at the back of scenes.
It elaborates that the prominently focused and disclosed areas should incorporate wallet architecture, the provision of insurance on the behalf of a custodian, the procedure of securing, managing, and transferring of the private keys, the management of risks dealing with fraud or insider collusion, and the data centers’ physical security. The respective company additionally proposes set rules for crypto exchanges’ dealing with stablecoins. As per the exchange, a few among the stablecoins may have a risk of being deprived of adequate support provided by appropriate assets.
For instance, volatile and risky assets provide support for a stablecoin and such assets do not deliver transparent support with a sufficient amount of these assets, which could expose that stablecoin to a hazard. With such a price the platform’s settlement finality could be interfered with because the price of stablecoin provided as crypto assets’ payment in a transaction through the venue, and the respective crypto asset’s value are not equal at once.
The list of FTX’s proposals ends with a recommendation for standardized KYC (know-your-customer) as well as AML (anti-money laundering) protocols to be implemented in the industry of cryptocurrency. Moreover, periodic self-audits are also recommended to be carried out on regular basis for a consistent review as well as examination thereof on the behalf of the primary regulators.
HeraldSheets.com produces top quality content for crypto companies. We provide brand exposure for hundreds of companies. All of our clients appreciate our services. If you have any questions you may contact us easily with Herald Sheets Facebook Messenger App. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors and the views expressed in them do not reflect the views of this website. Herald Sheets is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.