Ripple’s APAC Policy Director Says The Collapse of FTX was Incredibly Damaging

Ripple’s APAC Policy Director Says The Collapse of FTX was Incredibly Damaging.

According to the Ripple APAC Policy Director, the fall of FTX has been “incredibly damaging” to the crypto space.

The fall lead to scrutiny on crypto regulations

The APAC policy lead for Ripple, Rahul Advani, told Cointelegraph he expects crypto regulations will be scrutinized more closely following the FTX saga.

At the same time, governments will reevaluate their position on the crypto and blockchain technologies.

“The collapse of FTX is incredibly damaging for the crypto space and once again underscores the need for greater regulatory clarity,” Advani said.

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For the crypto sector to grow and protect consumers, forward-looking and flexible regulations will be needed, Advani argued.

“[These regulations] must include robust measures for consumer protection but also recognize the different risks posed by business-facing crypto companies. “What we don’t want to see is a knee-jerk response that could stifle innovation within the sector.”

The fall of FTX

It was the catastrophic collapse of the company that reverberated throughout the crypto ecosystem, resulting in sell-offs of other cryptocurrencies.

For the first time since November 2020, Bitcoin traded below US$16,000 on November 9 2022, down 15% from the day before.

Over the course of the two-day period ending November 9 2022, the price of Ethereum fell by more than 30% and was close to falling below US$1,000. Due to the fact that the cryptocurrency market is largely unregulated, the bad reputation of digital assets is a major concern.

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A number of firms have exposure to FTX, raising the possibility of other exchanges and platforms experiencing a similar situation.

As of now, it is too soon to assess the full impact of FTX’s fallout on the crypto industry, but a contagion, in which a shock spreads to other areas, is very likely. Several crypto companies have filed for bankruptcy or are about to file for bankruptcy.

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Jamilatul Mahmudah

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