FTX Collapse: African Crypto Industry Leaders' Perspective and Advice to Regulators – Bitcoin News

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Rume Ophi said regulators should not use FTX's collapse as a pretext for imposing stricter regulation as this can lead to other problems. regulation sec

The collapse of FTX and subsequent calls for tougher regulation by the likes of U.S. Senator Elizabeth Warren have increased the likelihood of regulators adopting even stricter crypto laws. In Africa, crypto industry participants warn of the unintended consequences arising from rushed and over-restrictive regulations.

In Africa, where FTX had a minimal footprint, commenters believe regulators there are likely to use the crypto exchange’s collapse as justification for refusing to regulate or for banning crypto entities altogether. This will be despite crypto assets’ game-changing role in Africa’s remittances and cross-border payments arena.

Instead of introducing tougher laws, the SIBAN boss said it would be best if the U.S. Congress, the U.S. Securities and Exchange Commission , and other regulators were to consider regulatory “frameworks that encourage and require accountability, security, and transparency in the crypto market.”

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