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FTX founder urges regulators to create a unified crypto framework

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At the Asian Financial Forum, an event organised by Hong Kong’s government to showcase new potential within the region’s economic environment, Sam Bankman-Fried, the founder and CEO of crypto exchange FTX, reportedly called on regulators to create a uniform framework for digital assets.

Instead of focusing on assessing whether assets are securities, the businessman suggested that regulators concentrate on simplifying regulations and developing a crypto rule book.

A framework focusing on transparency and fraud prevention, according to Bankman-Fried, may be more significant than classifying assets as securities. While the FTX CEO did not name the regulatory authorities he was criticising, many regulators throughout the world are concerned about tokens being classified as securities. He is confident, however, that this will not safeguard investors.

In addition, the crypto billionaire emphasised the regulatory frameworks for other asset classes. Stating that digital assets should be treated similarly.

This isn’t the first time the youthful exchange entrepreneur has had a run-in with the authorities. Bankman-Fried summoned to a committee hearing in December 2021. When he and other CEOs from notable crypto firms pushed US regulators to offer regulatory clarity on digital assets.

Meanwhile, many experts predict that regulatory standards will significantly improve by 2022. According to Hatu Sheikh, co-founder and chief strategy officer of DAO Maker, regulators “realise the market is evolving. And is currently even too vast to have a blanket ban applied,” according to a poll. Sheikh further stated that while regulations are important, restrictions are not.

Decentralized financing (DeFi) may be a focus of laws in 2021, according to EasyFi Network CEO Ankitt Gaur. Who spoke in the same study. “DeFi is gradually making its way into the mainstream,” Gaur said, adding that “conversations about regulation are happening”.

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