The day before the hearing

The U.S. board of directors will hold a crypto conference on Wednesday, inviting industry leaders, including FTX developers and developers. The day before the hearing, FTX also announced the “FTX Principles of Business Regulation” for use by developers. One of the most important is the creation of an integrated regulator of key affairs.

Thiab regulatory integration Ecosystem reconstruction

Under current regulations in the United States, the stock market and commodity derivatives are governed by different rules, and the CFTC oversees the derivatives market and the SEC oversees the location (cash). This can make the business unprofitable. Thus, FTX seeks to establish a joint venture under management, of which commodities, interests, risk management, KYC and other regulations, can be legal tender, rights and sharing.

“To be more specific, there are two licensed regulators in the US. FTX has selected an administrator to chair the crypto trading platforms to integrate the site and its components, compliance, etc. Rising regulators affect platforms of crypto, but are not responsible for day-to-day surveillance. "

Another important principle is the development of business models. Although there are intermediaries in the financial markets today, what is interesting is that the restrictions on access to users have increased.

For example, traders can still save money by spending thousands to tens of thousands of dollars per year to get accurate prices and trade information, when international exchanges such as FTX only require entry access. . When you go online, you can check the international rates.

So when policies are in place, you can consider changing the role of ecosystem integrity in terms of tech and tech, as well as protecting users.

“This should be explicitly allowed (although not required) directly in the consumer's business model, as long as the user protection interference (in this case provided by the platform provided) is tied. Carry on. "

FTX also sets out other important principles, including the role of the property manager which is required for the business, to restrict the consumer when necessary, to close the rules, maintain the account, prevent user damage or the laundry, and other problems. Administrators should develop asset / trade declarations for exchange rates, standards for fixed coins (to ensure that assets after fixed income are not very valuable and risky), etc.

In fact, FTX is not the first exchange to discuss regulatory compliance. We believe that digital asset activity should be distributed to government regulators to avoid interference with multiple regulators. Binance even mentioned the law last month, which, while not as comprehensive as FTX or Coinbase, mentioned that the platform had a responsibility to protect users from malicious users.

FTX co-founder Sam Bankman-Fried will join the “The Future of Digital Assets and Finance: Understanding the Challenges and Benefits of Transformation in the United States” of the House Financial Services Committee on Wednesday. United States. The FTX announced to foreign media "Decrypt" that the SBF will inform Congress that the president does not need to form a new president.

The FTX concludes: Governance generally operates under existing law which can only be achieved through the establishment and cooperation of business regulatory bodies.