atleft t1_ixoh2ic wrote on November 25, 2022 at 1:07 AM

Reply to comment by UsedToBsmart in Reuters: Global regulators to target crypto platforms after FTX crash by Globalist2

FTX *was* regulated, and their actions clearly violated regulations. Since they clearly weren't enforced here, will additional regulations even matter?

SomethingDumbthing20 t1_ixoi46e wrote on November 25, 2022 at 1:17 AM

Crypto exchanges are very loosely regulated. There's no federal regulation and only a handful of states have crypto specific money transmission laws. Regulating these entities like banks is the only way it'll ever truly be a safe place to store funds. The current system doesn't work because it's too easy to fudge the books and examinations are too infrequent.

UsedToBsmart t1_ixojnv2 wrote on November 25, 2022 at 1:31 AM

Who was it regulated by?

atleft t1_ixooe2a wrote on November 25, 2022 at 2:14 AM

The CFTC: https://bettermarkets.org/newsroom/ftx-was-registered-with-and-licensed-by-the-cftc-which-failed-to-properly-regulate-or-supervise-it-and-its-innumerable-former-cftc-officials/

More on the failure of regulators: https://time.com/6235816/ftx-collapse-legal/

UsedToBsmart t1_ixopssz wrote on November 25, 2022 at 2:27 AM

The specific entity, FTX Derivatives US, was regulated by the CFTC and it did NOT file for bankruptcy. This was a company that FTX purchased and renamed. Overall FTX was not regulated.