Stricter Global Crypto Regulations Reduce Risk of Major Market Collapses Reports Nickel Digital

Stricter Global Crypto Regulations Reduce Risk of Major Market Collapses Reports Nickel Digital

A report from Nickel Digital Asset Management suggests that stringent global crypto regulations are significantly reducing the risk of large-scale collapses in the digital asset market, such as the FTX incident. The report highlights that regulatory measures have bolstered market stability by enforcing stronger risk management, transparency, and compliance within the industry.

How New Regulations Support Crypto Market Stability

Nickel Digital’s report underlines that regulatory scrutiny is prompting exchanges to strengthen practices against money laundering and improve asset custody, addressing issues that contributed to past market failures. Enhanced global oversight has also been fostered by frameworks like the EU’s Markets in Crypto-Assets (MiCA) regulation, which provides clear guidelines for digital asset businesses.

Although the report emphasizes the positive impact of these regulations, it notes that inconsistencies in enforcement across jurisdictions could create oversight gaps. CEO of Nickel Digital, Anatoly Crachilov, added that while bad actors cannot be entirely eliminated, technical solutions like off-exchange settlement have greatly reduced counterparty risk.

Prosecutors Advocate Leniency for Ex-FTX Executive Nishad Singh

Meanwhile, prosecutors are seeking leniency in sentencing former FTX executive Nishad Singh, highlighting his “exemplary cooperation” in the FTX collapse investigation. Singh’s testimony helped expose misconduct by former CEO Sam Bankman-Fried, particularly related to fund mismanagement and record manipulation. Singh, who pleaded guilty to fraud and conspiracy in early 2023, has expressed remorse, with his legal team arguing for a reduced sentence due to his role and cooperation.