FTX Bankruptcy may trigger highly strict crypto regulation, says Andrew Yang
The former United States presidential candidate Andrew Yang shared his opinion on the current downfall situation of the crypto sector because of the bankrupt crypto exchange FTX.
FTX was a popular crypto exchange, in terms of global crypto trade volume & highly secured crypto services. But 10 days ago, this exchange became bankrupt because of a small controversy with Binance & big panic over the FTT, a native token of the exchange, sale. The mismanagement of the user’s funds by the exchange played a very important role in pushing the FTX exchange to file bankruptcy under Chapter 11 in a US district court.
On 18 November, Andrew Yang, former United States presidential candidate, talked about the high panic situation among the crypto Investors because of the downfall of the top second-ranked crypto platform FTX.
Yang said:
“I’ve always been in the camp that some intelligent regulation is a good thing. I think it would help the industry mature and make it more mainstream. But, unfortunately, we missed a beat — like a major beat,”
Further, he said that the downfall of FTX & its affiliated companies like Alameda Research, FTXus, etc created a situation where crypto regulatory development will go through very strict standards & may impose highly strict rules on the crypto sector.
Yang also confirmed that he is working to educate the agencies like Bipartisan Policy Center, a Washington, D.C.-based think tank so that they can understand crypto & blockchain technology more precisely.
FTX collapse & outcomes
The whole crypto sector knows very well how a small panic of the FTX customers uncovered a very big mistake of the FTX exchange and further exchange collapsed badly.
In the present time, the majority of the crypto platforms are facing an outflow of funds & users because of the panic. In response, the majority of the crypto companies are giving proof-of-reserves of their funds, which is a very good outcome for crypto investors.
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