The “FTX’s Key Principles for Market Regulation” blog consists of a
10-points proposal aiming to help U.S. regulators build a crypto-centric
regulatory framework.
Bahamian-based cryptocurrency exchange FTX released a list of
principles and proposals to help policymakers build the regulatory
framework. The policy recommends the market-structure choices made by
several leading crypto exchanges and suggests its implementation across
all jurisdictions.
FTX shared the “FTX’s Key Principles for
Market Regulation” blog after Maxine Waters, the chair of the House
Committee on Financial Services, invited several CEOs of major crypto firms to testify on the topic of digital assets and the future of finance.
Out of the 10 key principles,
one of the recommendations calls for an alternative regulatory approach
that proposes a unified regulatory regime for spot and derivatives
marketplaces. According to the blog:
“The regulatory
label on a given product or market need not change the core goals of
regulation, and the same rulesets should generally apply across all
markets.”
FTX also explains the need for a direct
membership market structure, i.e, allowing entities to perform regulated
trades without the involvement of a third party. The exchange also
suggests a regulation demanding greater transparency around the
custodians of crypto assets, arguing that the platform “users should be
given visibility” into how custodial services plan to address concerns
related to fraud and theft.
The blog further demands frameworks
for reporting transactional activity to avoid market manipulation and
ensure customer protection. FTX also pointed out the need for regulating
stablecoin issuance:
“A platform operator that permits
the use of stable coins for settlement of transactions should be
required to explain the standards the platform operator uses in deciding
which stable coins it permits for such purposes.”
In
August, FTX CEO Sam Bankman-Fried announced the exchange’s proactive
measures to streamline its Know Your Customer (KYC) operations.
Citing
the importance of KYC tools for cryptocurrency’s mainstream adoption,
Bankman-Fried inaugurated a new feature on FTX that confirms a user’s
jurisdiction based on their registered phone number:
“We
check users’ phone numbers against their submitted names in KYC1, in
order to further verify them. When this doesn’t work or there isn’t
data, we’ll require KYC2 to access some features of the site, including
futures.”
source link : https://cointelegraph.com/news/ftx-releases-crypto-regulation-proposals-before-us-congressional-hearing
