A research report by Galaxy Digital, a financial services firm, highlighted the evolution of the cryptocurrency market after the collapse of FTX. The emergence of new crypto exchanges offering self-custody options aimed to address the transparency and oversight issues that led to FTX's downfall. Analyst Lucas Tcheyan emphasized the importance of users having direct control over their digital assets on these platforms.

Exchanges that do not offer self-custody services are now providing evidence of reserve audits to demonstrate the presence of client assets, as detailed in the report.

Following Bankman-Fried's 25-year prison sentence for fraud and conspiracy charges related to FTX's collapse, the launch of spot Bitcoin (BTC) ETFs has brought a pivotal regulatory development. With the introduction of regulated Bitcoin ETFs in the US, investors can benefit from similar protections as stock purchases, reducing the appeal of unregulated offshore exchanges, according to Tcheyan.

Galaxy Digital also pointed out efforts to establish improved regulatory frameworks and self-regulatory practices within the cryptocurrency sector.

Although positive advancements have been made, challenges persist in the crypto market. The report stressed the need to address and rectify detrimental practices that have tarnished the industry's reputation in the past.

*This information is not intended as investment advice.