Will the FTX crash lead to a new string of regulations?

Sahana Kiran
Source – Unsplash

With no proper crypto regulations in place, governments across the globe were finding it difficult to govern the industry. However, with the crash of every prominent project, new laws were being introduced. For instance, the infamous collapse of Terra paved the way for stringent stablecoin regulations. Therefore, several speculate that the downfall of the FTX empire would bring about new laws.

As of now, about two countries across the globe were seen probing the FTX crash. Turkey was the latest one to join the list. Earlier this week, Turkey’s Financial Crimes Investigation Agency revealed that it had begun investigating FTX following its bankruptcy filing.

It was further brought to light that the Turkish regulator would be probing institutions like banks and crypto asset providers along with people associated with the exchange.

Turkey has been making quite some noise for its interest in crypto. It should be noted that a whopping 8 million people across the country have been involved in crypto. Adhering to this demand, FTX rolled out a subsidiary in Turkey.

Currently, users of FTX Turkey were offered a Google Form without a deadline for delivery in order to retrieve their funds. Users were prompted to submit their International Bank Account Number and address on the company’s website and Twitter account to start the refund procedure.

After the US and the Bahamas, Turkey seemed to be taking an interest in recovering user funds. Several parts of the US joined in on the investigation as well.

Manhattan US Attorney’s Office latest to kickstart probe on FTX crash

According to reports on Monday, the Manhattan U.S. attorney’s office is looking into FTX after the collapse of the cryptocurrency exchange. It should be noted that it was valued at more than $32 billion.

The Department of Justice’s Southern District of New York decided to start an investigation as a significant amount of funds disappeared from FTX.

As mentioned earlier, the increased scrutiny from across the globe could certainly open up doors for stricter laws governing crypto.