FTX has recently filed for bankruptcy, and currently owes $3.1 Billion to it’s largest creditors. Users of the playform are now at a standstill wondering how to get their money back.
A senior at the Bank of England has responded to the news by stating that better regulations are necessary to protect the people, their money, and the financial system from these kinds of situations.
Deputy governor for financial stability at the Bank, Sir Jon, has shared his concerns regarding cryptocurrency. He stated that Cryptocurrency is still too small to pose a large threath of harm in these situations, but it won’t be that way for long, as Crypto is growing at levels we never knew would happen.
This year alone, the largest Crytocurrency, Bitcoin, has plunged 70%. “It comes as the UK is set to approve laws in the Financial Services and Markets Bill, which is currently in Parliament. The bill will introduce regulation for stable coins – a crypto asset backed by an asset such as a currency – and the marketing of crypto assets.”
Sam Bankman Fried grew his exchange to the second largest in the world, consisting of $10bn-$15bn traded a day. Yet, Mr Ray, who replaced Sam Bankman-Fried, criticised what he called a “complete absence of trustworthy financial information”.