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FTX founder suggests regulators to focus on building a unified crypto framework

Updated: Jul 25, 2024
Published: Jan 11, 2022
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According to the reports, the founder and CEO of cryptocurrency exchange FTX, Sam Bankman-Fried, called on authorities to develop a unified framework for cryptocurrencies during an event organized by the Hong Kong government, the Asian Financial Forum. 

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FTX CEO suggests shifting focus to fraud prevention 

While the FTX CEO did not name the regulatory authorities he was criticizing, numerous regulators around the world are focusing on determining whether or not tokens are securities. A strategy that emphasizes transparency and fraud prevention, according to Bankman-Fried, may be more significant. 

Bankman-Fried pointed out that, rather than concentrating on assessing whether assets are securities or not, regulators should shift their focus to consolidating the rules and creating a rule book for cryptocurrencies instead. The Asian Financial Forum was focused on highlighting fresh opportunities within the economic landscape of the region.

The multi-billionaire further pointed out other asset classes that have proper regulatory frameworks by adding that the same actions should be taken in the case of the digital asset class.

Exchanges vs. Regulators

The young FTX CEO has always been vocal when it comes to engagement with regulators. In December 2021, when the United States SEC asked crypto exchanges to come forward for the committee hearing, he, along with other prominent firms’ executives, urged US regulators to offer clarity on cryptocurrencies.

On the other hand, the relationship between regulators and cryptocurrency exchanges is quite complex. For example, the Indian authorities recently imposed a heavy crackdown on cryptocurrency exchanges while Binance is helping regulators in safeguarding and regulating the crypto space. 

The issue with crypto regulation is its deep roots in the technology and the finance sector as well. With the boom of the crypto space, crypto exchanges like FTX have come out in support of these blockchain-based assets.

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