FTT Another Crypto Fiasco? SERC Regulated MoonXBT Stresses on Regulation Importance for Crypto
It has been just over half a year since Terra-LUNA crashed and caused an earthquake in the crypto world. But now another turmoil begins to unfold as two of the biggest giant crypto exchanges Binance and FTX are battling each other and Binance plans a massive FTT liquidation.
The feud between Binance and FTX may be traced back to long ago, but the current battle started with a report where Alameda Research, FTX’s CEO Sam Bankman-Fried’s trading firm, was allegedly insolvent according to their latest balance sheet. The report points out that not only Alameda and FTX are extremely tied together given the major assets held by Alameda are unlocked FTT, but also the trading titan could be insolvent given it holds more than $7.4 billion loans whereas its major assets amounted to a little less than that.
Following the so-called revelation, the CEO of Binance decided to liquidate the FTT in its holding in a way with minimal impact on the market. However, it can be seen that the impact on the market is far from “minimal” since FTT’s price has seen a dramatic drop.
“It all comes down to regulation”, says Jack, CEO of MoonXBT, a crypto social trading exchange regulated by the Securities and Exchange Regulator of Cambodia (SERC). “Both trading firms and crypto exchanges should have decent regulations in order to lessen the high volatility of the crypto market and the potential loss of the users.”
Crypto Platform Finances Need to Be Audited for Fund Safety
Regardless of the degree of truth regarding Alameda’s insolvency, it rings a bell for asset regulation for crypto firms. Along with the development of crypto as an asset class, the scale of the assets of both exchanges and crypto trading firms is becoming larger and larger.
“It is reasonable for crypto platforms of all sorts to get audited in order to have a healthy balance sheet which is directly linked to the profits of the users,” says Jack, CEO of MoonXBT.
As a direct working partner of the Cambodian government, MoonXBT is being regulated by SERC and has had its balance sheet audited by SERC thoroughly to make sure the platform has healthy finances to ensure the safety of the users’ funds. MoonXBT also needs to keep a healthy balance sheet regularly to deliver regulation-compliant performances.
Exchanges Behaviours Need to be Checked for Responsibility
The financial market has an amplification and ripple effect. Even though Binance tries to sell its FTTs in as little impactful way as possible, the market can overreact to it with panics. The bigger the players are, the bigger responsibilities they have. However, it seems right now the big players are acting on free will and their moves are almost unchecked.
MoonXBT points out that crypto exchanges or crypto industry players, especially the giant ones, should have their behaviors checked by regulators from now and then to ensure they are being responsible.
MoonXBT, being regulated by SERC, has been tested for its absolute reliability and responsibility to operate as a crypto exchange. Under SERC’s regulatory framework, the platform has to guarantee that all its actions are in line with Cambodian regulations and cause little damage if not none to users.
For instance, during the LUNA crisis in May, MoonXBT chose to compensate users who suffered losses for their positions on non-LUNA-and-APE due to emergency shutdown which was a must as a regulated exchange.
On top of the above, MoonXBT has also worked with industry-leading security assets custodian Fireblocks and code audit firm Certik to provide a secure infrastructure for exchange users. Recently, it passed the qualification examination by SERC to enter the fintech environment testing in the near future.
“I think it’s safe to say you can expect less profit loss and better trading experience at an exchange that’s regulated directly by the government like MoonXBT nowadays,” says Jack.
For more information, please visit https://www.moonxbt.com/