24.01.2023 / FTX’s bankruptcy and fraud charges against Bankman-Fried have battered the crypto sector, highlighting gaps and differences in global digital-asset regulation. Japan’s rules have helped to shield investors, who are poised to be able to withdraw their funds from FTX’s local subsidiary.
The reason of the bancruptcy, was loose governance, lax internal controls and the absence of regulation and supervision.
Japan has begun to urge counterparts in the U.S., Europe and elsewhere to subject cryptocurrency exchanges to supervision that’s similar to those faced by banks and brokerages.
In the U.S., the Securities and Exchange Commission signaled it would step up its crackdown on crypto firms, while Germany’s securities watchdog has called for global rules to ensure financial stability.
It may become necessary for countries to create a multinational resolution mechanism to coordinate when large crypto companies fail.
Countries should prepare the measures to protect consumers and prevent money laundering, on top of having strong governance, internal controls, auditing and disclosure,
Source: The Japan Times
