David Carman, a former senior trader at the Chicago Board Options Exchange, said that the cryptocurrency derivatives exchange BitMEX did not comply with US regulatory requirements, which has caused harm to the entire crypto industry. Carman is currently helping to lead a Chicago-based global cryptocurrency regulatory association, trying to make the regulation of the entire industry clearer.
Carman said to Cointelegraph when talking about BitMEX: “If they don’t follow the rules, they will only hurt the entire industry and bring it down.”
“What is BitMEX thinking? What do these companies think, they are unfair, dishonest, dishonest, and opaque in their operations. What do they think will happen?”
The US Commodity Futures Trading Commission (CFTC) and the US Department of Justice (DoJ) have recently taken public legal actions against BitMEX over multiple accounts, including a lack of compliance. US authorities detained Samuel Reed, the chief technology officer of BitMEX.
Carman pointed out that BitMEX’s chaotic business has harmed the crypto industry and the company itself. He said: “Unfortunately this happened. It only scares people away.”
However, in contrast, strict supervision has also inhibited the development of the encryption field in some ways, making its growth more difficult.
Carman is a board member of the Global Digital Assets and Cryptocurrency Association (Global DCA). According to Carman, the main goals of the association are twofold: “We want to reduce and eliminate bad actors as much as possible, and we want to provide the market, especially institutions, with clear regulations and real security.”
Regarding the BitMEX news, Carman also pointed out the clarity of the U.S. Office of the Comptroller of the Currency (OCC) recently. The OCC basically approved the Federal Chartered Bank for digital asset custody. Carman said: “How many banks will join?”. He added: “I think the regulatory environment is not clear enough.”
When talking about BitMEX, he said: “Then something like this will happen, which will only bring bad reputation to the industry.” He added: “In addition, self-management is better than being supervised by regulators.”
“Once something like this happens, regulators may severely crack down on the entire encryption industry.”
The global DCA regulatory team is a long-term work, which originally originated in a meeting in March 2019. Since then, many changes have been made, which finally formed the current name and form.
