Lessons that the FTX case leaves for the crypto ecosystem in Colombia

Volatility was the key word to define the performance of cryptocurrencies during 2022. Among this, due to the alleged FTX millionaire fraud and its subsequent bankruptcy. Which, leaves as a challenge for the sector to generate more confidence to its users and investors.

(Read: Musk loses throne and crypto falls: 2022 blows to the richest).

“We are facing one of the largest financial frauds in the history of the United States”, acknowledged the prosecution body when announcing the eight criminal charges currently facing Bankman-Fried, which include wire fraud, money laundering and campaign finance violations. In addition, financial regulators also filed civil charges.

According to Andrés Gómez, country manager CryptoMarket Colombia, what happened with FTX shows “the importance of these types of platforms around the world adhering to local regulations and in the event that these do not exist, proactively seek global precedents that provide their clients with the necessary guarantee and security in all the operations they carry out”.

The expert clarified that this fact ignited the alarms aboute Protecting and supporting user funds. The impact was worldwide, both in Colombia and in Latin America.

(Also: Will the fear of risk, in 2023, end with cryptocurrencies?).

In figures51% of Latin Americans carried out transactions with some cryptoactive during 2022, based on the results of Mastercard’s New Payments Index; and 33% have used stablecoins (stable cryptocurrencies, with parity in a traditional currency such as the dollar) to make daily purchases.

Even, Colombia is located within the Top 10 of the report presented by the United Nations Conference on Trade and Development (UNCTAD) and which revealed the countries with the highest adoption of cryptocurrencies in the world.

This should serve as a call for the country, according to Gómez. “The time has come, and without further delay, to resolutely promote in Colombia the tools that allow a responsible and safer experience in the management of cryptos, considering the advantages of this type of currency, among them, its facilities for buying and selling. , their digitization and independence, since, since they are not controlled by governments or central banks, they are not governed by decisions dependent on the governments in power“, it states.

(Keep reading: FTX bankruptcy: keys to the case that shocked the world of crypto).

Finally, what happened with FTX can be seen as a breaking point to strengthen the crypto ecosystem and force the platforms to inform their clients about the necessary guarantees to protect their money.

“Likewise, users will be able to choose the platform where they can carry out their operations, having all the necessary information about the form of custody of their funds.“, says Gomez.

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