[ I N D E P T H | D I G I T A L A S S E T S ]
“ All the negative issues around crypto , like FTX and Bankman-Fried which came up in the past , are based on human fraud .”
CHRISTOPH HOCK , HEAD OF TOKENISATION AND DIGITAL ASSETS AT UNION INVESTMENT for composability and less need for reconciliation , argues David Newns , head of SIX Digital Exchange ( SDX ). However , Newns also highlights the importance of regulation to improve and ensure investor protection within this specific asset class .
“ The role that institutions play in this space is to find ways to enhance investor safety . When it comes to crypto assets , the notion that you have regulated institutions which are transparent and compliant with regulations will mean you trust them as a counterparty to provide services ,” asserts Newns .
“ That gives you the confidence that your assets are safe and that your activities are being conducted in the most fair and equitable way possible .”
The importance of regulation In addition to helping foster investor protection , regulation in digital assets can help ensure market integrity and promote stability in an increasingly digitised financial landscape . Without appropriate oversight , digital asset markets can be left susceptible to fraud , manipulation and other illicit activities .
Regulators can also help facilitate mainstream adoption by bridging the gap between traditional financial and digital assets , contributing to the longterm sustainability and legitimacy of the digital asset ecosystem .
“ Our key focus , as of now , is on crypto securities and that ’ s where governance is clearly required ,” emphasises Hock . “ All the negative issues around crypto , like FTX and Bankman-Fried which came up in the past , are
“ Traditional banking has so much efficiency already , despite what you might sometimes hear .”
DAVID NEWNS , HEAD OF SIX DIGITAL EXCHANGE ( SDX )
56 // TheTRADE // Q1 2024