What happened to the FTX platform is obviously dramatic for its customers. This incident had an unprecedented reach across the entire ecosystem because FTX was a major player in it, but it’s also because the cryptocurrency market is still young. Ultimately, this case could very well have occurred within the “traditional” finance sector because, in the light of what has emerged, it is mainly a concern for governance and risk management. It seems that too few resources have been invested in terms of compliance and legal framework. Without making age the only significant criterion, when we look at FTX’s management team, with an average age of just under 30, the executives still had very little experience to manage so many risks.
How has this affected you?
The fall of FTX has obviously had an impact on the entire cryptocurrency ecosystem in general, but also and above all on consumers who will demand greater transparency and security from market players. Of course, this can be seen as a regression in terms of the adoption of cryptocurrencies by the general public, but it will also push regulators to focus more on our market, which is for the better and should make it more virtuous. .
What is Bitstamp doing today, on the one hand to reassure its customers, and on the other, to go further in transparency?
As a historical player present on the market since 2011, from the outset we wanted to comply with all the countries in which we are present, which means that today we have about fifty licenses worldwide. Compliance and compliance with the regulatory framework have always been one of our priorities, which is why one third of our staff deal with these issues on a daily basis.
Furthermore, we have always stood out for our extremely low risk appetite and we have been able to surround ourselves with partners in line with this, such as BitGo, which is a reference player in the secure storage of digital assets. As an extension of this risk line, we have never invested in FTX or any of the other platforms that have suffered setbacks in recent months.
Finally, as a regulated operator, our customers’ assets have always been segregated from ours.
At European market level, will the MiCA regulation be the solution?
More than ever, the environment is favorable for regulators to open up MiCA (Markets in Crypto-Assets) regulation to MiCA 2 and bring greater clarity within the ecosystem, especially regarding regulation, risk management or also operability, integrating the theme of decentralized finance. Today, cryptocurrency regulation is still considered too fragmented and there are many differences and subtleties from one region of the world to another. It is therefore imperative to think about the regulatory framework on a global scale in order to limit gray areas and therefore abuses. This will be the only way to reassure consumers and restore their full confidence in cryptocurrencies.