FTX Crypto Exchange Proposes 10 Key Principles for Regulating the Crypto Market

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The discussion around crypto regulations in the US is currently at its peak and after Ripple, now FTX, another popular crypto exchange platform has come out with a list of principles to help Federal agencies regulate the crypto market. FTX released a blog titled “FTX’s Key Principles for Market Regulation” with ten key proposals that could be implemented across various crypto markets.

The FTX proposal also comes in the wake of Maxine Waters, the chair of the House Committee on Financial Services inviting the Crypto CEOs to testify before the Congress on December 8. As per an earlier announcement Circle CEO Jeremy Allaire, FTX CEO Sam Bankman-Fried, Bitfury CEO Brian Brooks, Paxos CEO Chad Cascarilla, Stellar Development Foundation CEO Denelle Dixon, and Alesia Haas, the CEO of Coinbase Inc. and the chief financial officer of Coinbase Global will attend the Congressional hearing before a packed house.

The 10-key principles suggested by the FTX crypto exchange is in no way a legislation proposal, but rather an overall perspective on how policymakers should approach regulations for the digital assets market. The official blog read,

“FTX does not propose specific legislation here but rather principles and proposals that could be reflected in policy making, whether in the form of legislation, rulemaking or other regulatory action. Many of these principles are familiar to traditional securities and derivatives markets, but some of the principles reflect market-structure choices made by FTX and other crypto-platform operators that we believe lead to superior outcomes for investors and, indeed, the public. FTX therefore believes public policy should not only permit these choices but promote those that lead to such outcomes. “

The 10-key principles mentioned in the proposal includes,

  1. Proposing One Primary Market Regulator with One Rule Book for Spot and Derivatives Listings.
  2. Full-Stack Infrastructure Providers and Maintaining Market-Structure Neutrality
  3. Custody of Crypto Assets – Key Functional and Disclosure Requirements
  4. Trading Platform Providers – Ensuring Regulatory and Market Reporting
  5. Ensuring Customer Protections
  6. Ensuring Financial Responsibilities are Met
  7. Ensuring Stable Coins Used on Platform Meet Appropriate Standards
  8. Full-Stack Infrastructure Providers – Ensuring Appropriate Cybersecurity Safeguards are Kept
  9. Full-Stack Infrastructure Providers – Ensuring Anti-Money Laundering and Know Your Customer Compliance

The post FTX Crypto Exchange Proposes 10 Key Principles for Regulating the Crypto Market appeared first on Coingape.

Publication date: 
12/04/2021 - 10:49
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