- JP Morgan stated centralized exchanges are the key player in the recent crypto collapse.
- Regulatory bodies initiated an investigation into the defeat FTX exchange.
The financial behemoth JPMorgan shared insight into the complete scenario of the demise of the prominent cryptocurrency exchange FTX. JPMorgan stated that the centralized player is the cause of the recent crypto collapse. Also, the banking giant believes FTX’s failure might eventually make way for more strong regulations for cryptocurrencies.
While the demise of FTX is encouraging crypto skeptics, JPMorgan stated that;
All of the recent collapses in the crypto ecosystem have been from centralized players and not from decentralized protocols.
Regulators Turned to investigate FTX
Sam Bankman-Fried’s FTX is one of the major players in the centralized sector of the cryptocurrency industry. Although, the FTX empire tumbled and filed for bankruptcy on Friday after encountering vital liquidity problems. The failure of the crypto exchange sent shock waves in the global crypto market.
The global authorities and worldwide investors have been alarmed, and regulatory scrutiny in the cryptocurrency industry has increased in the wake of the FTX crash. The U.S. Department of Justice, the U.S. Securities and Exchange Commission, the Securities Commission of the Bahamas, and the Bahamas’ Financial Crimes Investigation Branch all initiated investigations into the FTX company. Moreover, the Hong Kong Financial Secretary recently announced that the government forces stronger transparency and regulation while handling digital assets.