FTX collapse blows a hole in crypto’s decentralised promise

WE’VE seen this movie before. The recent implosion of crypto exchange FTX features a similar cast and plot as the collapse of other industry peers: charismatic founders, blue-chip backers who may have failed to ask tough questions, and market hype that masked weak internal controls.

The string of collapses serves a timely reminder: the crypto industry – if it ever wants to have mainstream relevance – needs to hold itself to higher regulatory standards.

Regulators have been cautious thus far. In a Monday (Nov 14) statement, the Monetary Authority of Singapore said licensed digital payment token service providers are regulated for money laundering, terrorism financing and tech risks, but not for “safety and soundness”.