One year after the fall of FTX, the cryptocurrency trading platform, we wanted to review how this sector has evolved. The collapse of the FTX cryptocurrency exchange created quite a stir in the world of digital currencies. Millions of cryptocurrency holdings were deleted from customers who had them in their possession. While Sam Bankman-Fried, the founder of FTX, faced several fraud charges in New York City.
What happened to FTX?
Sam Bankman-Fried’s downfall was immediate. FTX’s headquarters in the Bahamas collapsed and never recovered from its prosperous period when it counted more than $10 billion in deposits from the people who owned its services. Although there has been talk that there would be more regulations on the use of cryptocurrencies, the truth is that no progress has been made public yet and we will have to wait for more official news on the subject.
Do cryptocurrencies and cryptocurrency trading platforms have a bright future?
While many people around the world remain confident in the future of cryptocurrencies, it is true that the general public is not yet the most active buying sector. Some companies invest in them. So are millennials who have online businesses. It is common to learn about hackers who manage to steal cryptocurrencies on the network without flinching.
It is common knowledge that digital currencies are not yet formally regulated and that they are still burdened by the scourge of belonging to a tax haven where not all operations carried out at the international level can be controlled.
What will happen from now on with cryptocurrency trading?
It is known that the cryptocurrency trading platform Binance has been accused of practicing not entirely legal measures, as has happened to FTX. This puts cryptocurrencies
in a delicate situation as it made them wobble. Nevertheless, the fall of FTX did not cause the legal landscape to collapse. Currently, cryptocurrency lawmakers in the United States are debating what will happen. It has not yet been determined whether they will apply restrictions or whether they will issue new laws that may better regulate them. Right now they are taking the matter cautiously and acting slowly, unlike in the past, when they immediately took matters into their own hands.
These possible new measures appear to be a matter of controversy for Binance officials, who have rejected the measure in court. Investors fear that Binance will turn out to be another FTX. Binance’s customers are mostly from the United States. For now, John Reed Stark, a former Securities and Exchange Commission official, has commented that Binance could eventually collapse, because there is “nothing to stop it.”
One of the main problems faced by regulators is to have the rules of each country and to respect the differences between them. Something that puts the official regulation of cryptocurrencies in a bind. So, in reality, the world of digital currencies is still in the midst of transformation, even if there are movements that affect them with greater or lesser force.