The lack of a regulatory framework contributed to Sam Bankman-Fried's manipulation of FTX's assets. Banks should play a role in preventing future incidents.
from their accounts ahead of the firm shutting down and liquidating its business. This is unlike unregulated companies such as FTX and other crypto exchanges, which have simply frozen their clients’ assets and left them unable to recover their funds.
While it would be pertinent and sensical for any business which holds assets of a third party to fall under the same level of scrutiny and guidelines as banks do, it might be even more beneficial if traditional banks take on the role of a “trusted third party” and offer crypto services to their clients directly.
While the crypto world continues to wait for the much-needed intervention of regulators, banks should take the lead and embrace the new digital asset as a way of starting to mitigate the risks and losses that affect millions of crypto users today., CFA, is the co-founder and chairman of Fiat24, the first Swiss bank built on blockchain. He holds a master’s degree in economics from the University of Munich and an MBA from IE Business School.
The opinions expressed are the author’s alone and do not necessarily reflect the views of Cointelegraph. This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice.
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