{"id":1005736,"date":"2021-08-03T06:59:22","date_gmt":"2021-08-03T10:59:22","guid":{"rendered":"https:\/\/cointelegraph.com\/news\/regulatory-clarity-for-crypto-would-take-3-to-5-years-ftx-ceo-says"},"modified":"2021-08-03T06:59:22","modified_gmt":"2021-08-03T10:59:22","slug":"regulatory-clarity-for-crypto-would-take-3-to-5-years-ftx-ceo-says","status":"publish","type":"station","link":"https:\/\/platodata.io\/plato-data\/regulatory-clarity-for-crypto-would-take-3-to-5-years-ftx-ceo-says\/","title":{"rendered":"Regulatory clarity for crypto would take 3 to 5 years, FTX CEO says"},"content":{"rendered":"\n
Running a successful crypto business requires close attention to the cloud of regulatory changes put forth by governments. Sam Bankman-Fried, CEO of prominent crypto exchange FTX, featured in a CNBC International interview to discuss his efforts on this front. <\/p>\n
During the conversation<\/a>, Bankman-Fried highlighted FTX\u2019s efforts to stay on top of the changing regulatory landscape. As a part of this move, the entrepreneur shared his company\u2019s drive toward applying for licenses across numerous jurisdictions. Pointing out the need to be responsive to changing regulatory landscapes, he added:<\/p>\n \u201cI\u2019m spending five hours a day on everything from regulation to licensing and everything in between.\u201d<\/p><\/blockquote>\n As the CNBC spokesperson discussed the ongoing regulator\u2019s concerns over the Know Your Customer (KYC) and Anti-Money Laundering (AML) front, the FTX CEO clarified that the KYC and AML requirements change for each jurisdiction. <\/p>\n Foreseeing the need for more clarity in the regulatory space, Bankman-Fried expects governments to have a clearer stance in the next three to five years. He further stated his wish to become a part of the discussions with the regulators \u201cto build out this regime.\u201d<\/p>\n On the other hand, he did admit that few governments lead this space to provide a framework for running a crypto business. Touching on the subject of Tether (USDT<\/a>) and its controversial U.S. dollar backing, Bankman-Fried clarified that FTX treats USDT as any other free-floating crypto, saying:<\/p>\n \u201cThe [FTX] exchange doesn\u2019t treat it [USDT] as necessarily one-to-one with the U.S. dollar. That\u2019s for the market and users to determine.\u201d <\/p><\/blockquote>\n However, the CEO stated that he has not come across a report that suggests that USDT should be priced massively away from the U.S. dollar. <\/p>\n Related:<\/em> FTX reduces max leverage from 101x to 20x to encourage \u2018responsible trading\u2019<\/em><\/a><\/strong><\/p>\n A recent report from last week showcased FTX\u2019s latest efforts to reduce trading risks<\/a> by limiting the leverage on its crypto exchange. With an over 80% drop, FTX users can now leverage their trades up to 20x, which was previously standing at a staggering 101x.<\/p>\n While the news may have disheartened pro-risk traders, the overall notion toward this move remains positive. The exchange has not reported any reduction in daily trading volumes following the announcement.<\/p>\n