Bahamian-based cryptocurrency exchange FTX released a listing of principles and proposals to help policymakers build the regulatory framework. The policy recommends the market-construction choices made by several leading crypto exchanges and suggests its implementation across all jurisdictions.

FTX shared its blog FTX'south Fundamental Principles for Marketplace Regulation after Maxine Waters, the chair of the Business firm Committee on Fiscal Services, invited several CEOs of major crypto firms to bear witness on the topic of digital assets and the future of finance.

Out of the 10 key principles, one of the recommendations calls for an alternative regulatory approach that proposes a unified regulatory government for spot and derivatives marketplaces. According to the blog:

"The regulatory characterization on a given product or market demand not alter the core goals of regulation, and the same rulesets should generally apply beyond all markets."

FTX also explains the need for a directly membership market structure, i.e, allowing entities to perform regulated trades without the interest of a third party. The exchange besides suggests a regulation enervating greater transparency effectually the custodians of crypto avails, arguing that the platform "users should be given visibility" into how custodial services program to address concerns related to fraud and theft.

The blog farther demands frameworks for reporting transactional action to avert marketplace manipulation and ensure customer protection. FTX also pointed out the need for regulating stablecoin issuance:

"A platform operator that permits the apply of stable coins for settlement of transactions should be required to explicate the standards the platform operator uses in deciding which stable coins it permits for such purposes."

Related: KYC tools can minimize hassle for US crypto marketplace, FTX CEO says

In Baronial, FTX CEO Sam Bankman-Fried announced the exchange's proactive measures to streamline its Know Your Customer (KYC) operations.

Citing the importance of KYC tools for cryptocurrency's mainstream adoption, Bankman-Fried inaugurated a new characteristic on FTX that confirms a user's jurisdiction based on their registered phone number:

"We check users' phone numbers against their submitted names in KYC1, in society to farther verify them. When this doesn't piece of work or there isn't information, we'll require KYC2 to admission some features of the site, including futures."