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Crypto exchange FTX calls on regulators to ditch ‘securities’ mindset, devise a separate, single rule book for digital currencies
- The crypto exchange backed by BlackRock, Temasek, urges regulators to set a single rule book for virtual assets
- Spreading supervision across multiple agencies based on whether a product is a ‘security’ or not won’t protect investors, CEO warns
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FTX, the cryptocurrency exchange backed by investors including Sequoia, BlackRock, and Temasek, is calling on regulators to come up with a single rule book to oversee virtual assets.
Splitting oversight across multiple watchdogs based on whether a product is a “security” or not will not protect investors, the unicorn’s chief executive warned.
Sam Bankman-Fried, who co-founded the three-year old exchange in Hong Kong but moved to the Bahamas last year, said regulators should instead focus on building a single framework that mandates full disclosure in the global cryptocurrency market, now valued at US$2 trillion.
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This would enable investors to make informed decisions, and free the industry from a barrage of compliance requirements that could stifle innovation.
Rather than arguing about whether a product is a security or not, “let’s have a framework that addresses the important things such as disclosure, and how to prevent fraud,” said Bankman-Fried on the second day of the annual Asian Financial Forum organised by the Hong Kong government. The event is being hosted online this year.
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