These Countries Were Majorly Impacted by The FTX Collapse
The shock-waves sparked by the FTX and Alameda’s fallout have awakened regulators’ attention on centralized cryptocurrency exchanges. While the timeline for recovering FTX assets may take years, global regulators have taken this period to implement the proper crypto regulations. Following the proceeding of the voluntary chapter 11 bankruptcy filed, countries are now more aware of how sophisticated the crypto market is.
Moreover, the FTX and its officials’ case may take years, with some analysts predicting it may take more than a decade. Meanwhile, FTX assets, including businesses acquired during Sam Bankman-Fried’s tenure, will imminently be auctioned. Crypto investors, including Ripple, are eyeing the FTX assets.
The use of FTT tokens by Alameda to facilitate unhealthy loans has been questioned by regulators investigating the FTX case. Reportedly, Alameda lost over $8 billion of customers’ funds in risky loaning businesses. As such, the FTT token was overly leveraged to a falling crypto market.
Countries Significantly Impacted by FTX Fallout
FTX has been regulated in several jurisdictions thanks to its committed financial backing from well-known investors. Furthermore, the company has amassed the trust of millions of global crypto customers, who have been left stranded. Moreover, how will the millions of FTX customers ever trust centralized exchanges again in the future?
According to a study report conducted by Coingecko, South Korea saw the highest FTX traffic share of 6.1 percent, thereby representing approximately 297,229 unique users on average visiting the site monthly.
Notably, the FTX fallout has compelled South Korea’s government to propel the Digital Asset Basic Act, a comprehensive regulatory framework expected to be finalized next year.
Singapore crypto users – who majorly used FTX following the shuttering of Binance last December – were the second most affected, with approximately 5 percent of the traffic to FTX.com globally. In actual figures, this represents 241,675 monthly average unique FTX users.
The third most hit country by the FTX fallout is Japan – with 4.6 percent of traffic share – representing 223,513 unique users on average monthly.
On the Flipside
Crypto and blockchain enthusiasts, including CZ and Brian Armstrong, have upped the personal initiative to push crypto adoption globally. Nonetheless, countries are less likely to be lenient on crypto companies in search of foreign investors.
The United States regulatory agencies, including CFTC and the SEC, are reportedly investigating the FTX case. Nevertheless, the slow process by crypto-sponsored US congress shows the crypto market has more pain to swallow.Source