Independent Reserve calls for regulatory action to protect crypto investors
The call came on the back of the FTX collapse.
Singapore’s first licensed cryptocurrency exchange, Independent Reserve, has called for urgent and practical regulatory action to protect the state’s crypto investors following the collapse of FTX.
The exchange particularly called for the lifting of the ban on cryptocurrency trading advertising.
Independent Reserve said the ban | inadvertently exposes consumers to crypto ‘get-rich-quick’ schemes, scams, unregulated exchanges and other riskier investments, as people instead turn to search engines, forums, and social media as a resource."
" Allowing regulated industry players who have gone through the necessary checks and balances to communicate with consumers will drive awareness of safer options for investors genuinely interested in cryptocurrency," the exchange said.
"Having the ability to reach out through local advertising channels in the absence of advertising restrictions will enable more of these investors to establish a reliable haven for their digital assets. Regulated players should meanwhile ensure that their communications do not trivialise the risk of investing in crypto," it added.
Meanwhile, Independent Reserve said, "a strict set of risk policies must be set in place, and custody must be managed by a qualified team, with external oversight by independent auditors," whenever events like the FTX collapse happen.
" Client assets must be held on a (1-for-1) basis to ensure that customers can fully withdraw their holdings at any time," the exchange said.