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The failure of FTX has served to highlight the fragility of risk controls and strong governance in the cryptocurrencies sector. Increasingly, institutional investors are likely to question the reliability, oversight, risk controls, cybersecurity precautions to mitigate hacks, etc, of service providers’ back-offices. The use of technology will increase as digital assets trade 24/7 and make many of the manual process and procedures that are currently relied upon questionable - not to mention the challenges around having to deal with a multitude of jurisdictions and custody providers.
Full Article Here
The failure of FTX has served to highlight the fragility of risk controls and strong governance in the cryptocurrencies sector. Increasingly, institutional investors are likely to question the reliability, oversight, risk controls, cybersecurity precautions to mitigate hacks, etc, of service providers’ back-offices. The use of technology will increase as digital assets trade 24/7 and make many of the manual process and procedures that are currently relied upon questionable - not to mention the challenges around having to deal with a multitude of jurisdictions and custody providers.
Full Article Here