It seems that the FTX collapse has not only shook the entire crypto industry but the regulatory sectors from around the world as well.
The crash of the exchange was enough to shock not only the crypto investors but also the governments on a global scale.
Since the crash, regulators from all over the world have been on very high alert. They have been very strict about the operations being run by the cryptocurrency firms in their jurisdictions.
Why are the Authorities Worried?
Whether it is the governments or the regulators, the situation is dire on all sides. It is worth noticing that the entire world is already going through a hard time due to the ongoing economic downtrends.
At a time like this when the entire world is in economic chaos, FTX collapse is no less than a calamity for the entire world.
People who are already suffering due to the economic downtrends have suffered even more from their connection with the crypto exchange.
The countries are concerned that people losing their money to the likes of FTX exchanges, would make the economy even more unstable.
This would be a major loss to their economies and pull their country’s growth even lower than it is already.
Therefore, the regulators are not ready to take any chances, and thus, they are informing their locals about the uncertainties and risks of crypto exchanges.
Their main concern is the crypto exchanges that are not regulated and registered. This means that such platforms are nothing but trouble for those who become part of them.
Such platforms are never obligated or bound by any kind of legalities so they can run away whenever they want. If they do, there is no way people can get their funds back.
The Philippine Government and Regulators are Active
Being highly concerned about the latest happenings in the crypto industry due to the FTX exchange, the Philippine government and the regulators have decided to react.
The securities regulator in the Philippines has taken it upon itself to make sure that local investors are aware of the risky and unauthorized crypto exchanges.
For this purpose, the Securities and Exchanges Commission (SEC) in the country has issued a warning for the awareness of the local investors against such exchanges.
They have tried to enlighten local investors about the risks and uncertainties involved with cryptocurrency exchanges that are unlicensed.
The regulatory authority is well aware that multiple crypto exchanges operating in the country are doing it without having any license.
This poses a great threat to the entire crypto industry in the Philippines but unfortunately, many local investors have already joined them.
However, the regulator issuing a warning against such exchanges would eventually help them understand exactly what they are dealing with.
The SEC did not Name FTX
While advising the investors about the risks involved with unlicensed exchanges, the SEC did talk about the happenings in the crypto industry.
Although the SEC did not specifically talk about the FTX exchange and its collapse, it did indicate that its target was the exchange.
The regulator stated that they are monitoring the crypto market and the recent crypto exchange collapses are very concerning for them.
They have taken the event of the major crypto exchange going down, into consideration when talking about the unlicensed exchanges.
Warning for the Unlicensed Exchanges
While warning the investors against such exchanges, the regulator did reiterate the need for a license.
The regulator confirmed that any entity entering and approaching the Philippine locals for offering crypto-related services must be regulated and licensed.
If it is not a licensed entity in the Philippines then it is full of risk and must not be interacted with at all.
As the regulator has issued a warning, it suggests that it may end up taking strict actions against the unlicensed exchanges within the country.