Before meeting with the Financial Services Committee in the US House of Representatives, the FTX exchange proposed key principles for regulating the cryptocurrency market.
Cryptocurrency company FTX on its blog
posted a draft set of rules for regulating the cryptocurrency market developed by its specialists, which, according to the operator of the trading platform, will contribute to the effective development of the cryptocurrency market within the framework of the global law. The key proposal for regulating the cryptocurrency market is called the creation of a unified supervision regime for the spot and derivatives markets, which will be governed by the model of the primary regulator.
“For cryptocurrency markets, the key principles of market regulation generally apply in the same way in spot and derivatives markets, as well as in commodity and securities markets. That is, the type of product or market should not change the main objectives of the regulation. The same sets of rules must be applied in all markets. ”
The company insists on allowing organizations to conduct regulated trading without complying with third party requirements. According to the exchange, more transparency is needed with regard to cryptocurrency operators so that platform users have a better understanding of how their assets are protected and the mechanisms for reimbursement in case of their theft as a result of cyberattack or fraud. FTX believes it is necessary to notify regulators of suspicious transactions to avoid market manipulation and ensure customer protection. The exchange believes that regulation of stablecoins should include a requirement obliging cryptocurrency platforms to regulate the rules for using stablecoins for transactions.
“Platform operators that allow the use of stablecoins for settlement of transactions are required to explain the standards they use when deciding which stablecoins it allows for these purposes.”
FTX CEO Sam Bankman-Fried will likely build on these rules in his speech to the Financial Services Committee in the US Congress on Wednesday, December 8, 2021.
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