Regulatory clarity for crypto would take 3 to 5 years, FTX CEO says
Running a successful crypto business requires close attention to the cloud of regulatory changes put forth by governments. Sam Bankman-Fried, the CEO of a prominent crypto exchange FTX featured in a CNBC interview to discuss his efforts on this front.
During the conversation, Bankman-Fried highlighted FTX’s efforts to stay on top of the changing regulatory landscape. As a part of this move, the entrepreneur shared his company’s drive toward applying for licenses across numerous jurisdictions. Pointing out the need to be responsive to changing regulatory landscapes, he added:
“I’m spending five hours a day on everything from regulation to licensing and everything in between.”
As the CNBC spokesperson discussed the ongoing regulator’s concerns over the Know Your Customer (KYC) and Anti Money Laundering (AML) front, FTX CEO clarified that the KYC and AML requirement changes for each jurisdiction.
Foreseeing the need for more clarity in the regulatory space, Bankman-Fried expects the governments to take a clearer stance in the next 3 to 5 years. He further stated his wish to become a part of the discussions with the regulators “to build out this regime.”
On the other hand, he did admit that few governments lead this space to provide a framework for running a crypto business. Touching on the subject of Tether (USDT) and its controversial U.S. dollar backing, Bankman-Fried clarified that FTX treats USDT as any other free-floating crypto, saying:
“The (FTX) exchange doesn’t treat it (USDT) as one-to-one with the U.S. dollar. That’s for the market and users to determine.”
However, the CEO stated that he has not come across a report that suggests that USDT should be priced massively away from the US dollar.
A recent report from last week showcased FTX’s latest efforts to reduce trading risks by limiting the leverage on its crypto exchange. With over 80% drop, FTX users can now leverage their trades up to 20x, which was previously standing at a staggering 101x.
While the news may have disheartened pro-risk traders, the overall notion towards this move remains positive. The exchange has not reported any reduction in daily trading volumes following the announcement.Source