Shining the Light in Crypto’s Dark Places

Something changed in regulators’ minds after the November crash of the FTX crypto exchange.

After watching local exchange Atom Asset Management put a freeze on withdrawals following the fiasco, Hong Kong Finance Secretary Paul Chan Mo-po announced that “insiders can no longer claim they are above regulation or that governments just don’t ‘get it’. The hype has turned out to be just like any other financial manias of the past”.

Similarly, Mark Branson of Germany’s biggest regulating body BaFin said we should abandon our present tolerant approach to crypto, which “just let the industry grow as a playground for adults. We’ve seen the self-regulated world. It will not work.”

FTX seemed to be the straw that broke the camel’s back because officials are fed up with the present state of regulation in the industry. At the same time, Paul Chan Mo-po conceded that crypto is “unstoppable”, and Andrew Griffith of the UK Treasury mentioned that “we’d be foolish to ignore the potential of the underlying technology”.

Regulation, then, should not only function to deal out slaps on the wrist. It should foster an environment in which crypto assets can safely and effectively flourish. Julia Leung, the next chief of Hong Kong’s Securities and Futures Commission (SFC), likens proper regulation to a cocoon. “Some say the cocoon is limiting innovation and development,” she explains, “but like all good regulation, it will help fintech firms and their services to incubate”.

CFD online trading with cryptocurrencies has been directly impacted by not only the FTX collapse but also the bankruptcies of big crypto firms earlier in the year. Join us for a taste of some of the most current attitudes on the issue. 

The Senate Hearing

Recently the US senate’s banking committee met to discuss the extent to which lack of regulation was responsible for the FTX crisis. Senator Elizabeth Warren insisted strongly that new legislation was needed to combat money…


Leave a Reply

Your email address will not be published. Required fields are marked *


Join the Community