FTX shared the blog “FTX’s Key Principles for Market Regulation” after Maxine Waters, chair of the House Committee on Financial Services, invited several CEOs of large crypto companies to testify on the topic of digital assets and the future of the market. finance.
Of the 10 Key Principles, one of the recommendations calls for an alternative regulatory approach that provides a unified regulatory regime for cash and derivatives markets. According to the blog:
“Regulatory labeling on a given product or market does not need to change the fundamental objectives of regulation, and the same sets of rules should generally apply to all markets. “
FTX also explains the need for a market structure with direct membership, i.e. allowing entities to carry out regulated transactions without the intervention of a third party. The exchange also suggests regulations requiring more transparency around crypto asset custodians, arguing that the platform “users should have visibility” into how custodian services plan to resolve issues related to the crypto. fraud and theft.
The blog further requires frameworks for reporting transactional activity to prevent market manipulation and ensure customer protection. FTX also highlighted the need to regulate stablecoin issuance:
“A platform operator who authorizes the use of stablecoins for the settlement of transactions should be required to explain the standards that the platform operator uses to decide which stablecoins it authorizes for these purposes. “
A report: KYC Tools May Minimize Hassle for U.S. Crypto Market, Says FTX CEO
In August, FTX CEO Sam Bankman-Fried announced the exchange’s proactive steps to streamline its Know Your Customer (KYC) operations.
Citing the importance of KYC tools to the widespread adoption of cryptocurrency, Bankman-Fried introduced a new feature on FTX that confirms a user’s jurisdiction based on their registered phone number:
“We check users’ phone numbers against their names submitted in KYC1, to further verify them. When that doesn’t work or there is no data, we will need KYC2 to access some features of the site, including futures.