“It’s a great time to learn about the industry,” said Hayden Adams, founder of UniSwap, the world’s largest exchange (DEX). “Of course [FTX founder Sam Bankman-Fried] he had the ability to do it [what he did] He says that he was building a in the middle medicine that was controlling everything. “
Unlike traditional exchanges, which allow people to exchange regular cryptocurrencies and store goods on behalf of customers, DEXs do not manage customer funds, and trades are made on a peer-to-peer basis. According to Adams, this model removes the central risk that got FTX into hot water in the first place.
UniSwap is still a work-in-progress from a user perspective. Adams says: “If you compare us to the Internet, we’re still in the dial-up era. But he believes that DEXs will eventually replace exchanges like Binance as the go-to vehicles for crypto trading.
There is no way that the crypto exchange is putting in place it will not block the period of further analysis that is expected to begin.
Until now, efforts to regulate the crypto industry have been slow, mainly due to the current technical difficulties, said Charley Cooper, former COO of the Commodity Futures Trading Commission (CFTC) in the US. But the magnitude of FTX’s fall should light a fire under regulators around the world.
Some have pointed out that the big fall has happened several times in traditional financial markets, which can provide a useful example for management in crypto. Justin Sun, the founder of the TRON network and a member of Huobi Global’s advisory board, says that problems in financial institutions are often followed by “regulation and evaluation. [that] helped boost the industry,” and that “it is certain that the manufacturing industry will do the same.”
The EU has been working for the past two years on new rules that will be applied to crypto-assets, known as Markets in Crypto Assets (MiCA), designed to protect both consumer investment and financial stability. The details have been finalized and are ready to be voted on in February 2023.
If passed, MiCA will prevent crypto companies from using accounting methods to blur the line between their funds and customers, a mistake that appears to have had a major impact on FTX’s downfall. “If MiCA was forced, [the FTX collapse] it would not have happened this way,” says Stefan Berger, a member of the European Parliament (MEP) in Germany who is leading the process of implementing the new laws. “The FTX case is the Lehman Brothers era of crypto. What the cryptosphere needs now is trust, and to have trust you need clear rules and clarity.”
Meanwhile, in the US, the Biden administration in September outlined plans to regulate the crypto industry for the first time. The new policy aims to combat fraud and ensure financial stability, leaving ample room for innovation and business. This is hard to beat, however, questions remain about which regulatory body should lead, the Securities and Exchange Commission or CFTC.
