Crypto: Sam Bankman-Fried outlines his ideas on regulation

Regulators today go to great lengths to regulate the crypto market. Unfortunately, these crypto regulations are still subject to debate. For his part, Sam Bankman-Fried expressed his thoughts through a long document entitled “Possible standards of the digital asset industry”.

Explanatory tweets from Sam Bankman-Fried, founder and CEO of FTX, along with his document

Sanctions, allowlists and blocklists

This is the first great subtitle of the document written by Sam Bankman-Fried. According to the CEO of FTX, it is imperative to establish blocklists to comply with sanctions on blockchain environments. For this, there are three options:

  • Allow any transfer
  • Prohibit transfers between sanctioned parties
  • Prohibit all transfers except those specifically authorized by competent authorities.

Sam Bankman-Fried clearly supports it: he is against the list of authorizations. “All trade will break down if you need an authorization list to trade”he explained.

In return, he emphasizes an important element: everyone must respect the sanctions lists drawn up by OFAC. Still according to him, there should be upstream a list of sanctioned addresses updated in real time. OFAC or another entity will obviously have control over this data.

Suggestions for securing the crypto market

Another point addressed by Sam Bankman-Fried via his tweets: the security of crypto platforms. According to him, players in the crypto industry must do everything possible to protect their customers. More explicitly, it would mean taking appropriate and drastic measures to reduce the impact of breaches and hacks.

To do this, Sam Bankman-Fried advocates the establishment of a community standard. It will serve as a basis for settling disputes, but not only! It would also require plaintiffs to return the majority of crypto assets. Simply put, this standard would prioritize client protection.

Blocklists and hack protection are just the first outlines of Sam Bankman-Fried’s recently published handbook. In truth, this is a comprehensive document covering other points about crypto regulation (like the asset list and the challenge). Must read!

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