Governments Likely To Closely Regulate Crypto Exchanges After FTX Bankruptcy - US Investor

WASHINGTON (UrduPoint News / Sputnik - 12th November, 2022) Governments will likely begin to closely regulate cryptocurrency exchanges after the FTX exchange filed for bankruptcy, Sovereign Wealth Management CEO Gary Korolev told Sputnik.

"Government agencies are always eager to expand power and they will certainly not let this crisis go to waste," Korolev said. "We can expect crypto exchanges to start to be regulated closely similar to how already existing traditional exchanges, like the New York Stock Exchange and others, are regulated."

Earlier on Friday, the cryptocurrency exchange FTX announced that it has commenced voluntary bankruptcy proceedings to begin the review and monetization of assets after competitor Binance backed out of plans to acquire it.

John Ray III was appointed as FTX's new chief executive officer to replace Sam Bankman-Fried after he resigned. However, Bankman-Fried will assist the company management during the proceedings, the release added.

On Wednesday, Binance, the largest cryptocurrency exchange in terms of trading volume, said that it had decided not to pursue the acquisition of FTX.

Binance CEO Changpeng Zhao said earlier this week that FTX had contacted them asking about acquiring the exchange due to a significant liquidity crunch. Binance had signed a non-binding letter of intent to acquire FTX and cover the liquidity shortage in order to protect users, Zhao added.