Does the digital asset market need regulation?

Sam Bankman-Fried, CEO of FTX cryptocurrency platform, is confident that regulation is becoming a key requirement for the development of the digital asset industry. According to him, at present, cryptocurrencies are used by about 200 million people around the world, which is a very serious user base.

Bankman-Fried named the popularization of smart contracts and the emergence of solutions for scaling as advantages of the crypto industry. Thanks to such technologies, it is possible to process up to 50 thousand transactions per second.

The crypto enthusiast also noted that many industrial-grade applications may need high performance, for example, in millions of transactions, which is not yet available. Bankman-Fried believes that there are still not enough real-world examples of such applications. The FTX CEO is confident that the crypto community needs to focus on cooperation with regulators.

“There was a lot of friction between the industry and regulators, and often participants on both sides felt frustrated. And, which is also important, it is often unclear for companies how to formalize the process of issuing tokens or register a platform. This complicates the safe development of the industry and at the same time makes investment difficult for institutional players. On the other hand, it is also difficult for regulators to work with cryptocurrency companies,” wrote Bankman-Fried.

In his opinion, the joint work of crypto industry participants and regulators can start with stablecoin projects, but transparency must be guaranteed, regular audits performed and reporting mechanisms developed.

Bankman-Fried believes that in this way it will be possible to solve most of the issues on the part of regulators. In addition, it is necessary to develop uniform industry standards for the operation of crypto companies, the functioning of the market and the prevention of money laundering.

“If you want to build confidence in the industry, you need to work with regulators. But you need to pay attention to the quality of projects, the quality of the code. And every case of fraud diminishes that trust. Every time we do something wonderful, we move forward. But every time we screw up, we take a step back. We need to move gradually, step by step, but always forward!” Said Bankman-Fried.

Earlier, the FTX CEO stated that in 2022, non-fungible tokens will spread even faster in the field of content creation and video games. Bankman-Fried believes that NFTs will prove to be more than just a “standalone product” but rather “integration with many other products.”

Do you agree with the FTX CEO that the crypto industry needs regulation?