Crypto Regulation Grabbing the Headlines and Swyftx Cuts 90 Jobs

An op-ed piece from CNBC alongside a Financial Times report citing UK treasury sources have both called for increased regulation of the cryptocurrency space. Plus, Australian cryptocurrency exchange Swyftx cuts jobs.

Cryptocurrency “needs bank-like regulation”

In an op-ed report on CNBC, two markets experts have called for tighter regulations for the cryptocurrency industry. Dennis Kelleher is president and CEO of Better Markets (a non-profit that promotes financial markets reform) and Rob Nichols is the president and CEO of the American Bankers Association, and in the article they state, “that crypto companies and other nonbanks pose a significant and increasing risk to our financial system that needs to be better understood and regulated.” This is on the back of the contagion impacts from the collapse of the major cryptocurrency exchange, FTX, alongside the bankruptcies of crypto lenders Voyager and Celsius. They go on to add, “the critical overriding principle to getting the shadow banking system on safer ground is this: apply the same regulatory standards to the same products and services, regardless of origin or the technology involved.”

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UK concluding plans for crypto regulation

According to a report in the Financial Times, the UK Treasury is completing plans for an array of regulations for the cryptocurrency industry. This is set to include restrictions on foreign companies selling into the UK and limits on advertising. Financial Times sources have indicated that the Financial Conduct Authority (FCA) will be given wider powers to regulate the cryptocurrency sector, which could include supervising the operations of firms and how they advertise their products. In addition, the report stated that there could be limitations on cryptocurrency companies selling into the UK market from overseas, plus procedures for how crypto companies can be wound down.

Swyftx axes 90 jobs

In the wake of the FTX collapse, the Australian-based cryptocurrency exchange, Swyftx has cut 90 jobs. Alex Harper, co-founder and CEO, sent a message to employees stating that although Swyftx did not have direct exposure to FTX, the company was not insusceptible from the impact it has had on crypto markets. The exchange currently employs 235 people, so the job cuts are approximately 35% of the company workforce. CEO went on to state “We are simply far larger than we need to be to operate and grow next year and beyond,” adding, “The truth is that Swyftx grew too fast.”