Crypto Industry Reaches a Crossroad

 
With the recent FTX crisis, many larger issues within the crypto industry as a whole have been brought to light. There has been limited regulation that has allowed for a lack of disclosure and checks & balances within the system. With the collapse of FTX, the market currently looks unstable and insecure which may cause investors to walk unless changes can be made that create a level of integrity and consumer protection.

Gabriella Kusz, CEO of Global Digital Asset and Cryptocurrency Association, finds the silver lining answering the question of what comes next? How can other crypto currency exchanges and the wider blockchain and crypto industry prevent loss of customers amidst the ripple of collateral damage the FTX collapse has caused?

Gabriella’s Thoughts:

“So, the major flaws that we saw coming out of the FTX collapse have been around customer assets and full disclosure. So, understanding that customer assets are appropriately segregated and are not used by the corporate entity itself. Ensuring that we have strong governance and a system of checks and balances.

Again, you know, maintaining an active board, ensuring that you have internal controls, all of these will be extremely important to managing an appropriate exchange. Maintaining appropriate liquidity reserves so that you can disclose whether these are proprietary reserves in that you’ve put aside as a buffer to cover any losses of customer funds, but also around enterprise risk management and stress testing. I think lastly, what we’re seeing, especially coming out of the bankruptcy filings, is the importance of proper books and records, as well as the importance of an independent audit.

We have reason to believe that there is a silver lining to a lot of this. In terms of reassuring customers, I would say that you know at this point the crypto industry is coming around the Global Digital Asset and Cryptocurrency Association and our core principles, which are based on the six areas that I just outlined, in order to elaborate those and to move forward in pushing industry to attest to and to implement these types of procedures and actions.

It’s with this that we believe that we can enhance market integrity and also advance consumer protection, while at the same time fostering innovation and technological advancement.”

Follow us on social media for the latest updates in B2B!

Latest

Hotel demand
Travel in 2023 Isn’t Slowing: Will Economic Headwinds Threaten Hotel Profits?
December 1, 2022

Travel in 2023 will not be slowing down. This would normally be perceived as good news for hoteliers, but PwC’s Hospitality Directions report paints a more mixed picture for hotels; the report indicates that economic headwinds may threaten the pace of recovery in the industry, despite record highs for metrics like RevPAR this year. According […]

Read More
B2B payments
There Will Not Be a Dominant Player Taking Over B2B Payments in 2023
December 1, 2022

B2B payments are facing an exciting trend in the space, as vendors continue to innovate to offer new and better solutions for this $30 trillion industry. According to PaymentsJournal, continuous improvements in B2B payments are largely driven by the complicated infrastructures necessary for international payments and a pressing need for greater flexibility. With a company […]

Read More
COP27 drew focused attention on the role of the built environment in global carbon emissions. Where does AEC need to start to make a change?
Is the COP27 Focus on AEC Carbon Emissions Telling the Whole Story?
December 1, 2022

Construction sustainability continues to be an emphasis for international leaders. COP27, the UN’s gathering of more than 90 heads of state and 35,000 delegates from 190 countries, convened earlier in early November to discuss unified action against climate change and which industries need to take on a bulk of the responsibility to adjust operations and […]

Read More