THECRYPTO.WATCH – A unified crypto framework is urged to be implemented by US regulators immediately. This is done to protect investors while preventing fraud.
Founder and CEO of cryptocurrency exchange FTX, Sam Bankman-Fried requested arrangements to create a unified crypto framework for digital assets at an Asian Financial forum. The agenda was held in Hong Kong.
The Importance of a Unified Crypto Framework to Overcome Fraud
The forum was convened by the Hong Kong government to review new opportunities from a regional economic perspective. Bankman-Fried said that regulators should focus on regulation and bookkeeping on cryptocurrencies, instead of focusing on determining whether an asset is a security or not.
He noted that a framework that focuses more on disclosure as well as preventing the possibility of fraud is more important than labeling an asset as a security.
Meanwhile, the CEO of FTX did not provide details on the desired regulatory agency. It should be noted that many regulators around the world are focused on classifying tokens as security. However, he believes this cannot protect investors.
Not only that, a crypto billionaire reviewed the regulatory framework for other asset classes. The same applies to digital assets.
Insistence on Laws and Regulations Related to Digital Assets
It is not the first time that Bankman-Fried has entered into the regulator’s. Earlier in December 2021, Bankman-Fried along with executives from well-known crypto companies were summoned to attend a committee meeting.
They also urged US regulators to provide explanations regarding regulations regarding digital assets. Bankman-Fried in a congress also submitted related proposals consisting of 10 points.
This was done to help US regulators build a crypto-focused regulatory framework.
10 Principles Relating to Digital Asset Policy Rules in Total
FTX, released a list of principles and proposals to assist policy makers in establishing a regulatory framework.
This policy is recommended as a structured option by several leading crypto exchanges. In addition, it provides advice on its overall application to jurisdictions.
Of the 10 principles, one of them is a recommendation related to an alternative regulatory approach that proposes an integrated policy regime for the spot and derivatives markets. A unified crypto framework regarding regulatory labels on a particular type of product or market does not need to be changed according to the core purpose of regulation. The same rules should also apply in various market sectors.