Cryptocurrency exchange platform FTX has started a mission to help policymakers build a better regulatory framework by developing a set of principles and ideas. The policy promotes many top crypto exchanges’ market-structure choices and urges that they be implemented across all jurisdictions.
After the chair of the House Committee on Financial Services, Maxine Waters, asked several CEOs of large crypto firms to speak on the topic of digital assets and the future of finance, FTX published the “FTX’s Key Principles for Market Regulation” blog.
The seriousness of the country towards crypto is visible as recently, a US senator urges Congress to take action on cryptocurrency matters if the SEC fails to do so.
One of the primary recommendations in the ten essential principles is for an alternative regulatory approach that offers a unified regulatory system for spot and derivatives markets. The regulatory label on a given market or service need not affect the essential purposes of regulation, according to the blog. It added that the same rulesets should be applied across all markets.
FTX demands transactional activity from frameworks
FTX further explains the requirement for a direct membership market structure, which allows firms to conduct regulated trades with zero involvement of some third party. The exchange giant also proposes legislation requiring greater transparency from crypto-asset custodians, claiming that “users should be provided visibility” into how custodial services plan to manage fraud and theft concerns.
The blog demands frameworks to report transactional activity for the prevention of market manipulation and ensuring user protection. FTX also noted that the stablecoin issuance regulation is necessary along with the information of the standards used by the platform operator.
Sam Bankman-Fried, the CEO of FTX, recently announced proactive measures to streamline its Know Your Customer (KYC) operations. Before this, Binance also revealed the effect of KYC verification on its platform.