In an interview that was published on Thursday by the Mint newspaper, Paul Brody, the global blockchain leader at EY, highlighted the crypto winter, the necessity for regulation, and the collapse of the cryptocurrency exchange FTX.

He was questioned about whether or not he believes that the ongoing crypto winter will end any time soon. He said, "This current winter is considerably milder than the one that we had a year ago." "One of the most notable characteristics of this winter is that there is a decoupling that is taking place between the price of cryptocurrency assets and the product and engineering development work that is taking place in the cryptocurrency sector," In their opinion, EY executives said:

For the very first time in the history of the industry, fluctuations in pricing do not have a significant influence on the growth of the sector over the long term. We are gradually shifting our attention away from the sector's primary emphasis on financial matters.

He went on to say that application development, non-fungible tokens (NFTs), and decentralized autonomous organizations are now receiving a significantly greater amount of attention within the Ethereum ecosystem (DAOs).

The FTX Crash and the Urgent Need for Cryptocurrency Regulation, According to Brody
The executive from EY also mentioned the failure of the cryptocurrency exchange FTX, which some people have likened to Ponzi schemes, such as the notorious one conducted by Bernie Madoff.

In response to a question about whether customers can place their faith in cryptocurrency exchanges in the wake of the FTX hack, he issued the following cautionary statement: "The idea behind cryptocurrency was that it is fully transparent because it is on the blockchain, and you can see if something bad happened." That turned out to be an incorrect theory. Having access to data does not automatically provide the ability to comprehend the intricate data flow in smart contracts.

Brody proceeded by saying, "Entities that have attempted to merge on-chain and off-chain financial activities without adequate regulatory monitoring are the ones who are not doing well."

"It's been impossible to know if your assets are strictly being held and used for you," the leader of EY's blockchain initiative warned. "It's also been impossible to know if they are being pledged and used in other scenarios." "The most important thing to remember is that your governance needs to either be straightforward enough for individuals to follow it, or you may go for a model that is carefully audited and publicly traded."

In addition to this, he underlined the importance of more stringent regulation, saying:

In addition to this, it is essential that regulatory agencies act swiftly and decisively when confronted with evident Ponzi schemes. I think there should be more regulatory action and more regulations that competent players should be able to obey.

As a result of the collapse of FTX, a great number of people have demanded that regulators in a variety of jurisdictions increase the amount of oversight they exercise. This week, the Deputy Governor for Financial Stability at the Bank of England, Sir Jon Cunliffe, emphasized that the collapse of FTX has made it clear that there is an immediate need for stricter regulation. The White House as well as a number of senators from the United States have called for adequate crypto oversight. Recently, a lawmaker in the United States called on the Securities and Exchange Commission (SEC) to move swiftly to regulate the cryptocurrency industry and urged the SEC to do so.

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