Coinbase CEO Brian Armstrong Says; Crypto market need regulations to avoid more issues like FTX Qoute Coin
New York City: The crypto markets have been battered by a series of washouts like FTX, and they need regulation to avoid more chaos. In an interview with Bloomberg, Coinbase CEO Brian Armstrong said that while regulations are important in the U.S., they aren’t always clear or consistent across different countries. “It’s clunky [in the U.S.] and sometimes feels like it’s all over the place,” he said, adding that there was no reason to believe any wrongdoing occurred during FTX’s hack last month
In the U.S., he said, regulation is “clunky” and “sometimes feels like it’s all over the place.”
For example, he noted that some states have securities laws that don’t apply to cryptocurrency exchanges but others do. Some states have no laws at all on cryptocurrencies; others require a license or registration with one or more regulators in order for an exchange to operate there (like California). And some exchanges must comply with local rules about money transmission licenses—which can be difficult if you’re located outside of those states’ jurisdictions.
In other countries, like Singapore, the regulatory framework is more straightforward. Coinbase is able to operate in Singapore thanks to a cryptocurrency payment license obtained in March 2019.
The license allows Coinbase to offer crypto derivatives and custody services for traders who want to make large investments without having to worry about compliance issues or running afoul of anti-money laundering rules.
The good news for U.S.-based exchanges: It appears that the SEC has no plans at this time for an outright ban against crypto trading platforms or products—at least not yet (though it did recently say cryptocurrencies will be considered securities). But both state regulators and Congress have been pushing hard for stricter oversight of these new financial products; only time will tell if those efforts bear fruit before year’s end…
Customer funds on FTX were reportedly transferred to an OTC trader, who then sold off around $20 million worth of bitcoin on Binance at fire-sale prices in a matter of minutes.
An OTC trader is a person or entity who trades using their own account, rather than on an exchange.
Binance is a cryptocurrency exchange that allows users to trade multiple digital assets like bitcoin and Ethereum. The company also hosts an ICO platform where it facilitates the sale of new coins.
A fire-sale is when something is sold at an extremely low price in order for the seller to get rid of it quickly before its value rises again. In this case, the trader was trying to sell off his holdings of FTX tokens at rock-bottom prices so he could liquidate them without having any losses from price fluctuations on Binance’s other exchanges (which are open source). He purchased them from another user who had been selling them off after having purchased them himself at much higher prices than what they would be worth now; he then transferred those tokens over into his own account where they were converted into Bitcoin Cash (BCH) before being sent off onto another exchange called Bitmex where they were subsequently cashed out with fiat currency via wire transfer which means no crypto transaction fees were incurred by either party involved here!
Crypto traders indicated that the hack may have been an inside job, but FTX has denied that claim.
This hack was not an inside job, and the company has no reason to believe that it was anything other than an accident. FTX has not identified any wrongdoing by FTX or any member of its team. In addition, we’re working with law enforcement authorities as they investigate this matter further and ensure that any affected parties are appropriately compensated for any losses caused by this theft.
“We have not identified any wrongdoing by FTX and we have no reason to believe this was anything other than an accident,” Armstrong said.
“We have not identified any wrongdoing by FTX and we have no reason to believe this was anything other than an accident,” Armstrong said.
The company has denied that the hack was an inside job and said it had no reason to believe that money was stolen as a result of any hacking activity.
Crypto regulations need work if innovation isn’t going to be stifled.
The most important thing to understand is that regulation is needed to ensure that consumers and investors are protected, as well as businesses. For example, if there are no regulations in place for a new technology like blockchain or cryptocurrency, then there will be no way of knowing whether or not your investment is safe.
It’s also crucial that governments take steps towards ensuring the safety of their citizens when it comes to digital currencies like Bitcoin—and this means making sure all crypto transactions are processed through secure platforms that can keep track of everything from who owns what coins at any given time (so you don’t end up being scammed), who transferred them from whom (so you know how much money has been spent), etcetera.
As the cryptocurrency markets continue to evolve, regulators need to get up to speed on what’s happening. This will help them determine how best to regulate these new financial products, but it might also mean that some services need to be brought in-house if they want access to clients who trade crypto for fiat currency.
