According to a recently published research report by financial services firm Galaxy Digital, the cryptocurrency market has undergone significant changes since the collapse of FTX.
According to the report, after the crash, new cryptocurrency exchanges emerged that allow users to store their digital assets themselves. These platforms were designed to address the lack of oversight and transparency that contributed to FTX's collapse. Analyst Lucas Tcheyan wrote that these exchanges allow users to gain direct control over their digital assets.
Exchanges that do not provide self-custody have begun publishing evidence of their reserve audits. This serves as proof that they have the client assets they claim, according to the report.
Bankman-Fried was sentenced to 25 years in prison last week after being found guilty of seven fraud and conspiracy charges related to the collapse of FTX.
The launch of spot Bitcoin (BTC) ETFs was also a game changer. In a critical step forward, US users will finally have access to a regulated Bitcoin ETF. This provides investors with the same investor protections they would receive when purchasing stocks, further reducing incentives to move to unregulated offshore exchanges, Tcheyan wrote.
Galaxy Digital noted that there is also a push for better regulatory frameworks and self-regulatory practices in the cryptocurrency industry.
Despite these positive steps forward, the crypto market remains fraught with challenges. The report stated that priority should be given to addressing and correcting harmful practices that have damaged the industry's reputation in the past.
*This is not investment advice.
