The collapse of FTX drew the attention of regulators in
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The collapse of FTX drew the attention of regulators in different countries to the cryptocurrency market

The collapse of the FTX exchange made regulation of the crypto sector urgent, explained in an interview with Reuters, the new chairman of the International Organization of Securities Commissions (IOSCO), Jean-Paul Servais (Jean-Paul Servais). He added that such “conglomerate” platforms will be the focus of regulators over the next year.

    Credit: REUTERS/Dado Ruvic

Credit: REUTERS/Dado Ruvic

Servais expressed the view that the regulation of cryptocurrency platforms can be based on the same principles applied in other economic sectors dealing with conflicts of interest without having to start from scratch.

Despite the fact that the cryptocurrency market has been around for a long time, regulators have so far refused to develop rules for how it works. But the collapse of FTX, which affected millions of investors and caused billions of dollars in losses, will force a change in that approach, Servais said.

IOSCO, which coordinates regulations for the G20 countries and beyond, has already established the regulatory principles for stablecoins. And now the focus will be on the platforms that trade them.

Servais noted that cryptocurrency “conglomerates” like FTX combine multiple activities “under one roof” such as:

“For reasons of investor protection, there is a need to further clarify these cryptocurrency markets by issuing targeted guidance on how to apply the IOSCO Principles to crypto assets.” he said.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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