Home95% of crypto transactions occur offshore, says Sam Bankman-Fried

95% of crypto transactions occur offshore, says Sam Bankman-Fried

Hassan Maishera

Sam Bankman-Fried has urged the United States government to provide clarity on the cryptocurrency situation in the country.

Sam Bankman-Fried, the chief executive officer and co-founder of cryptocurrency exchange FTX, has pointed out that more than 95% of crypto trading volume occurs offshore. He urged the US government to provide greater regulatory clarity to attract businesses to the country.

Bankman-Fried made this known while talking to members of the Senate Agriculture Committee during a hearing yesterday. He said;

“Despite the majority of the intellectual property for the digital asset industry originating from the United States, 95% of volume occurs offshore. The majority of assets are not accessible at all from the United States. It would be great to be able to move that liquidity, that business back onshore.” 

The FTX CEO cited 95% as he requested for clarity of federal oversight over the cryptocurrency industry. Bankman-Fried added that he supports the expansion of the jurisdiction of the Commodity Futures Trading Commission (CFTC).

The CFTC currently regulates the crypto derivatives market, and the FTX CEO wants the regulatory agency to also regulate spot cryptocurrency transactions.

Bankman-Fried suggested that the United States should create a process to allow cryptocurrencies to be registered in the country. He also asked for greater clarity over licensing requirements.

Sam Bankman-Fried’s messages align with the request of the CFTC Chairman Rostin Behnam, who urged the US lawmakers to grant his agency more authority over the cryptocurrency market. He also asked for a bigger budget to enable the CFTC to regulate trading in the fast-growing cryptocurrency market.

FTX is currently one of the leading cryptocurrencies in the world. According to Bankman-Fried, his exchange processes about $15 billion daily, accounting for roughly 10% of the global volume for cryptocurrency trading.

The exchange recently raised $400 million, and the company is now valued above $32 billion.

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