Sam Bankman-Fried, CEO of the FTX cryptocurrency exchange, spoke about his vision of regulating the crypto industry. He called compliance with the sanctions regime one of the most important provisions.
1) As promised:
My current thoughts on crypto regulation.https://t.co/O2nG1VrW1l
— SBF (@SBF_FTX) October 19, 2022
“We need fast and reliable lists of addresses associated with illegal financing,” said Bankman-Fried.
In his opinion, such a decision will allow trading platforms to comply with the sanctions regime. The block list will be maintained in real time by a centralized organization like OFACadded the founder of FTX.
“There must be a “frozen funds” address – perhaps for incineration, maybe owned by OFAC – to which you can send illegal assets if you receive them,” Bankman-Freed described the mechanism.
According to him, this will provide platforms with the opportunity to “fix” if they receive assets from a sanctioned address.
Bankman-Fried sees the need to set industry standards for protecting and informing retail customers. The fact that some tokens can be recognized as securities should not be a problem for the crypto industry, the head of FTX is sure.
“Ideally, we should be an industry where recognition as a security is not a bad thing: there are clear registration processes that protect customers and allow innovation,” he stressed.
As one of the most important problems for the industry, the head of FTX identified security breaches and hacks. In his opinion, the solution may be the practice in which projects pay rewards to hackers in exchange for the return of most of the stolen funds. As a standard, he suggested 5% of the total.
Regarding stablecoins, Bankman-Fried noted that they “provide huge opportunities for the modernization and democratization of payments.” But all stablecoins must be backed by an appropriate amount of safe reserves.
Traders involved in the stablecoin deposit/withdrawal process must be subject to proper procedures KYChe added.
Recall that in December 2021, on the eve of hearings in the US House of Representatives, FTX published an article in which she outlined her vision for the fair regulation of the digital asset market.
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