The Globe and Mail reports in its Tuesday edition that bitcoin and other cryptocurrencies were under pressure on Monday after last week's spectacular collapse of crypto exchange FTX, while regulators opened probes and rival exchanges sought to reassure jittery investors of their own stability. A Reuters dispatch to The Globe says that the implosion of FTX, once a darling of the crypto industry with a $32-billion (U.S.) valuation as of January, has spurred investigations by the U.S. Justice Department, the Securities and Exchange Commission and Commodity Futures Trading Commission. The SEC's probe is also targeting FTX executives, their knowledge of the handling of customer funds and any potential breaking of securities laws. While the crypto industry has touted digital assets as fundamentally different from traditional finance, the sector has proven to be susceptible to the same risks and should be subject to the same rules, Federal Reserve vice-chair Lael Brainard said on Monday. "It reinforces I think this need to make sure that crypto finance, because it is no different than traditional finance in the risks that it exposes, needs to be under the regulatory perimeter," she said. FTX filed for bankruptcy on Friday.
© 2023 Canjex Publishing Ltd. All rights reserved.