Disclaimer: The text below is an advertorial article that is not part of Cryptonews.com editorial content.
2022 was a major challenge for crypto exchanges. As Warren Buffett put it, only when the tide goes out do you discover who’s been swimming naked. In a volatile market, FTX, an exchange worth billions of dollars, was instantly eliminated from the market, let alone middle and small-sized exchanges. Many investors couldn’t even get back their assets stored on exchanges. Meanwhile, the crypto community has been discussing how to make centralized exchanges more regulated and transparent.
Following the FTX collapse, more traditional financial regulators put crypto on their radar screen. Fed vice chairman, SEC chairman, U.S. Treasury Secretary, the deputy governor of the Bank of England, and the International Monetary Fund have all proposed to impose effective regulatory oversight on crypto; the market should conform to the same rules as the traditional financial industry to mitigate risks.
Of the crypto exchanges out there, Coinbase is the biggest supporter of strong regulatory oversight. Coinbase CEO Brian Armstrong stated that the crypto regulations discussed by lawmakers worldwide will help them defeat competitors. Moreover, the exchange also published Regulating Crypto: How we move forward as an industry from here in December 2022, which describes how the industry can be regulated in terms of stablecoins, trading platforms, and custodians.
Regulatory intervention in crypto is clearly inevitable after the fall of FTX. That being said, in 2022, privacy protocol Tornado Cash suffered OFAC sanction and led to resistance to regulations in the crypto community. After all, sanctions are not what we want to see in a market that
Read more on cryptonews.com