Crypto Has Moved Past FTX, But Round-the-Clock Risk Oversight Is Still Critical
HONG KONG – The collapse of FTX in 2023 was a wake-up call for the crypto industry, forcing major players to rethink risk management. While the sector has made significant progress, continuous oversight is still needed, according to experts at the “Views From Wall Street to Crypto” panel at Consensus Hong Kong.
“Crypto has evolved dramatically over the past 18 months,” said Gautam Sharma, CEO and CIO of Brevan Howard Digital. “We’re seeing traditional finance principles being applied, like off-exchange settlement, where assets remain with custodians while trades occur on exchanges. However, risk management must remain a priority.”
Sharma emphasized the need for 24/7 monitoring of market, counterparty, and credit risks to prevent future collapses.
Counterparty & Credit Risk in Focus
Unlike traditional financial markets, where clearinghouses act as safeguards, crypto largely relies on direct transactions—**increasing counter
