Unbacked Exchange Tokens Like FTX’s FTT ‘Extreme Risk’: Bank o | .

Unbacked Exchange Tokens Like FTX’s FTT ‘Extreme Risk’: Bank of England Deputy Governor

The Bank of England’s Deputy Governor, Sir Jon Cunliffe, has weighed in the need for regulators to come up with strong consumer safeguards after the FTX crisis, according to a speech he delivered at a DeFi and crypto conference this morning.Cunliffe said one of the catalysts in FTX’s historic collapse.

FTT,” which had “no intrinsic value” and should not have been accepted “as collateral for loans and margin payments, as there are indications may have happened with FTX,” because doing so “creates extreme risk.”. Cunliffe pointed to “limited evidence” that FTX’s collapse prompted a consumer migration onto decentralized exchanges (DEXs).

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