FTX releases crypto regulation proposals before US congressional hearing

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FTX, headquartered in the Bahamas, has published a list of principles and proposals to help decision makers create regulations. The policy recommends market structure choices made by many of the leading cryptocurrency exchanges and proposes that they be implemented in all jurisdictions.

FTX shared the blog FTX Market Regulation Fundamentals after Maxine Waters, chair of the House Financial Services Committee, invited several CEOs of large crypto firms to testify about digital assets and the finances of the future.

Among the ten core principles, a recommendation requires an alternative regulatory approach that offers a single regulatory regime for spot and derivative markets. According to the blog:

“The regulatory mark for a particular product or market should not alter the underlying objectives of the Regulation and, in general, the same rules should apply in all markets.”
FTX also demonstrates the need for a direct member market structure, ie that organizations can perform structured transactions without the involvement of a third party. Oslo Børs also proposes regulation that requires more transparency about custodians of cryptocurrencies, and argues that users should be “given an idea” about the platform on how custodian services are planned to deal with fraud and theft.

The rules also require a framework for reporting transaction activity to avoid market manipulation and ensure customer protection. FTX also mentioned the need to regulate the issuance of stack coins:

“An operator of a platform that allows stack coins to be used to settle transactions should be required to explain the criteria used by the platform operator to determine which stack coins are allowed for these purposes.”
RELATED: FTX CEO Says KYC Tools Can Reduce Problems in US Cryptocurrency Market

In August, FTX CEO Sam Bankman-Fried announced the stock exchange’s active measures to optimize knowledge of customers’ (KYC) processes.

Bankman-Fried has noticed the importance of knowing your customers’ (KYC) tools for massive use of cryptocurrencies, and has opened a new feature on FTX that highlights user jurisdiction based on their registered phone number:

“We check users’ phone numbers with their names in KYC1 to check them later. If that does not work or the data is missing, we will require KYC2 to access certain features of the site, including futures.”

Source: CoinTelegraph

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