FTX Proves Why Banks Should Take Charge of Cryptocurrency

FTX Proves Why Banks Should Take Charge of Cryptocurrency

United States – Cryptocurrency enthusiasts and experts think that banks should adopt crypto to alleviate risks and stop losses that users experience from the crypto trading platform.

FTX has been the hot topic in the past few days and for active cryptocurrency users in the industry, the crisis shattered blow as a chaotic year for digital assets comes to an end.

The consequences are serious, with over a million businesses and people owed fiat following the crisis of the digital asset exchange, FTX, as per bankruptcy filings. It will undoubtedly push forward monitoring changes with probes into the ongoing collapse through lawmakers or federal activities.

It shows that officials worldwide have taken ample action toward digital asset exchanges, while managers may feel reassured that the crisis didn’t happen under their management. Many regulators would appreciate clear support from those in authority.

Some argued that authorities also are at fault for letting or encouraging the behavior of FTX and the creation of several flawed digital assets. It’s fair to tell authorities also are at fault for the disaster. While not acting shields them from debt, inaction on the part of these regulators is the same as damaging the reputation as presented since irresponsible not to perform more to shield consumers.

Brad Garlinghouse, the CEO of Ripple, tweeted that Singapore has a permitting context, altcoin classification laid out, and more. Regulators can regulate digital assets because they’ve done it to explain what good is, and they know all altcoins are not securities to shield crypto users. He said we all need supervisory assistance for companies that guarantee transparency and trust.

Digital assets are a unique asset type that continues to obtain traction. With a longer segment going without specified regulations, there’s a possibility for adverse events and predicaments. Given the uniqueness and intercontinental nature of digital assets, it’s not surprising that authorities face an extraordinary challenge that’s difficult to steer.

On the other hand, when the regulators don’t have enough action plans, it’s a big factor that provided the ability of Sam Bankman-Fried, CEO of FTX, to control and abuse assets for his benefit with no direct supervision. Any funding service might have the temptation to use their crypto customers to boost their income at the risk of placing the users in danger of losing all their money.

One good example is Nuri, a German cryptocurrency bank. It said to its 500,000 users to withdraw funds from the accounts before the shutdown, evaluating the actions of unregulated and regulated entities. It’s different from unregulated companies, like FTX or other cryptocurrency exchanges.

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