24/7 Cryptocurrency News

FTX Collapse Should Not Be Consider As Failure Of Crypto: EU Deputy Director General

Alexandra Jour-Schroeder, in the EU Parliament hearing said the EU doesn't see FTX as a failure of crypto or blockchain.
Published by
FTX Collapse Should Not Be Consider As Failure Of Crypto: EU Deputy Director General

On Wednesday, Deputy Director DG FISMA, Alexandra Jour-Schroeder, in the EU Parliament hearing said the EU doesn’t see FTX as a failure of crypto or blockchain. In addition to this, he blamed SBF for FTX’s collapse.

Notably, the recent bitcoin crash triggered a “crypto winter,” which resulted in the demise of crypto exchange FTX, and on Tuesday this week cryptocurrency lender BlockFi filed for bankruptcy protection. The European Union has agreed on a new groundbreaking market in crypto assets rules (MiCA), which are set to go into effect in 2024, putting the EU at the forefront of regulating a sector that has shrunk dramatically.

Advertisement

EU Deputy Director General shares views over FTX collapse

In a recent tweet cryptocurrency expert Patrik Hansen mentioned the update of the EU Parliament hearing on the FTX collapse and its implications for the EU. While speaking at the EU Parliament hearing Alexandra Jour-Schroeder, deputy director general of the European Commission’s financial services area, stated that it was critical to finalize MiCA certification with a final vote in the European Parliament. She claimed that there were problematic procedures at FTX, including no proper record keeping or separation of client and corporate accounts, and that the bloc included around 10% of the company’s customers.

Deputy Director General demands implementation of MICA

The deputy director general also highlighted the gravity of FTX collapse she stated “We don’t consider them as blockchain or cryptocurrency asset failures per se”. While answering on the question for the requirement of MiCA 2 she responded that the existing rules, which offer significant safeguards for investors and the financial system, should be swiftly approved.

Jour-Schroeder while speaking about the seriousness of FTX collapse said after FTX the tendency to move assets into personal wallet could be increase instead of holding them at exchanges  might increase severe risk.

Apart from that, head of risk analysis, Steffen Kern, at the European Securities and Markets Authority (ESMA), criticizes crypto market as a whole and said there is proof of market manipulation, weak leadership, and a lack of controls. On adding to that he said “This sector of the economy has issues. When it becomes effective, the regulatory framework will be crucial in addressing these problems,”

 

Advertisement

Share
Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

BNB Rally to $1,300 Will Continue As Binance Hits Crucial Q3 Milestone, Says Expert

Binance Coin (BNB), the native cryptocurrency of BNB Chain, has surged another 8% today, moving…

October 4, 2025
  • 24/7 Cryptocurrency News

Trump’s Real Estate Moves On-Chain as Hut8 Adds WLFI Tokens to Boost Treasury

Trump’s real estate portfolio is set to go on-chain amid World Liberty Financial’s announcement of…

October 4, 2025
  • 24/7 Cryptocurrency News

ASTER Token Defies Crypto Market Consolidation With 14% Upside, Expert See Next Stop at $3

Despite the broader crypto market consolidation, ASTER token is outperforming with 14% gains in the…

October 4, 2025
  • 24/7 Cryptocurrency News

MetaMask Gears Up for Major MASK Token Airdrop With Reward Points System Launch

MetaMask, Consensys’ Web3 wallet, is set to introduce a reward points system for on-chain activities.…

October 4, 2025
  • 24/7 Cryptocurrency News

Coinbase Joins Ripple and Circle In Applying For National Banking License

Crypto exchange Coinbase has applied for a national trust charter, joining the likes of Ripple,…

October 4, 2025
  • 24/7 Cryptocurrency News

USDT Issuer Tether Eyes $200M Raise To Launch Tokenized Gold Treasury Company

Tether Holdings, the company behind the world’s largest stablecoin USDT, is preparing to raise at…

October 4, 2025