Cryptocurrency exchange giant FTX has published a list of 10 proposals for market regulators in the US seeking to oversee the digital asset space.
In a new blog post, the exchange reveals what it calls "FTX Key Principles for Regulating the Crypto Trading Platform Market."
First on the list is having a primary market regulator who would be responsible for listing crypto assets in the spot and derivatives markets.
FTX says that spot markets and derivatives markets that are subject to different regulatory programs create inefficient and suboptimal market structures.
"We propose as a solution an alternative regulatory approach that would give market operators the ability to opt for a unified regulatory regime for the spot and derivatives markets, through a primary regulator model."
Also on the FTX list are practices related to custody of crypto assets on behalf of clients. The exchange says there should be more disclosure on how the funds are handled behind the scenes.
โKey areas of focus and disclosure should include: wallet architecture; if the insurance is provided by the custodian; how private keys are kept secure, managed and transferred; manage the risks related to collusion or insider trading fraud; and physical security of data centers ".
FTX too proposes standards on how exchanges deal with stablecoins. Depending on the exchange, some stablecoins may be at risk of not being sufficiently backed by the right assets.
โFor example, a stablecoin backed by risky and volatile assets and not transparently backed by an adequate amount of those assets with appropriate haircuts, could be exposed to price risk. This price risk could interfere with the firmness of the settlement on the platform, to the extent that the value of the stablecoin delivered as payment for crypto assets in a transaction on the platform is suddenly not equal. "
FTX's list of proposals concludes with a suggestion of standardized know-your-customer (KYC) and anti-money laundering (AML) protocols for the crypto industry.
โRegardless of what has been achieved, it is critical that regulation of the crypto market continues to require a significant focus on the performance of KYC and AML obligations. To ensure this, market operators must conduct regular self-audits and must also be subject to regular reviews and examinations by their lead regulator on these requirements. "
Check Price action
Don't miss a beat - Subscribe to receive crypto alerts by email directly to your inbox
Follow us Twitter, Facebook and Telegram
Browse Hodl's Daily Mix
& nbsp
Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
Featured Image: Shutterstock / zulfikri fakhruddin
