Chairman of the Global Securities Regulatory Agency: Next year will focus on the supervision of FTX-like encryption group platforms

Odaily Planet Daily News Jean-Paul Servais, the new chairman of the global securities regulator IOSCO, said in an interview that the FTX incident has injected greater urgency into the regulation of the encryption industry, and targeting such “conglomerate” platforms will be the focus of 2023. Instead of starting from scratch, Jean-Paul Servais said that regulating crypto platforms could borrow principles from other sectors dealing with conflicts of interest, such as credit rating agencies and market benchmark compilers. Cryptoassets such as bitcoin have existed for years, but regulators have resisted stepping in to create new rules. But Servais said the FTX debacle would help change that, with an estimated 1 million creditors facing losses totaling billions of dollars. Servais said that crypto “conglomerates” like FTX have emerged that perform multiple roles such as brokerage services, custody, proprietary trading, token issuance, etc., all under one conglomerate, creating conflicts of interest. Servais said: For investor protection reasons, there is a need to provide more transparency to these crypto markets by applying IOSCO principles to directional guidance for crypto assets. We intend to publish a consultation report on these issues in the first half of 2023. (Reuters)

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