Industry players canvass crypto regulation to protect investors

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With the collapse of a crypto firm, FTX, industry players are calling for a strong regulatory framework to protect investors, writes Temitayo Jaiyeola

According to the IMF, Africa was one of the fastest-growing crypto markets in the world. Industry experts said it was time for crypto to walk the path of regulation on the continent.

“If you look at FTX, it was headquartered in the Bahamas and that is because, in the US, the firm didn’t think there was an adequate regulatory framework for crypto and digital asset businesses. The absence/ near absence of a regulatory framework pretty much led to the idea that these innovators could run their businesses, set up businesses outside the US, and just regulate themselves.

He said the space already operated a centralised form of finance with exchanges running the show, and helping individuals to keep their crypto. “The FTX failure incidence has, of course, raised the global call for regulation of the crypto environment. For me, I think exchanges must be regulated much more tightly than normal banks. You know banking service providers are usually very regulated. In fact there is watertight regulation for them. If you do anyhow, you would see anyhow. That is what banking supervision and regulation is all about.

 

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