Ripple Official Says FTX Implosion is ‘Incredibly Damaging’

The implosion of the FTX Derivatives Exchange has several meanings to a couple of people, many have said what FTX could and could not have done.

The latest description is the one outlined by Rahul Advani, Ripple’s APAC policy director. Advani described the sudden crash of the cryptocurrency exchange as “incredibly damaging” for the entire crypto industry.

The APAC policy director believes that the situation would not last for a long time if the industry eventually turns its gaze towards developing ‘real utility’. He reiterated the need for a standard crypto regulatory framework citing the effect of the FTX contagion. Also, the government is expected to reevaluate “their stance towards crypto and blockchain technology.”

“The collapse of FTX is incredibly damaging for the crypto space and once again underscores the need for greater regulatory clarity,” Advani stated, adding that “[These regulations] must include robust measures for consumer protection but also recognize the different risks posed by business-facing crypto companies.”

Regulators Revoke FTX Licenses

So far, the implosion of FTX has caused many regions and their regulators to raise discussions on crypto regulation and implementation.

In some regions where FTX holds a license, such authorization has been revoked and the exchange has been ordered to suspend its operation. Aussie regulator, Securities and Investments Commission (ASIC) has suspended the license given to FTX Australia to offer its service.

ASIC further said that the suspension of the local arm of the crypto exchange would last till May 15th, 2023. Cyprus Securities and Exchange Commission (CySEC) equally ordered FTX Europe to halt its operations while the exchange proceeds with actions for the protection of its investors.

The statement by the Commission outlined “The Cyprus Securities and Exchange Commission on Wednesday, November 9th, called upon the Cypriot Investment Firm FTX EU Ltd to suspend its operations and to proceed immediately with a number of actions for the protection of the investors,”

In this same vein, many regulators have launched investigations into the former Chief Executive Officer (CEO) of the exchange Sam Bankman-Fried and the wrongdoings of FTX. While Advani is canvassing for crypto regulation, he has not failed to state that the regulation can best be generalized in a “one size fits all” as every region has their peculiar risks.