As a result, they were unable to meet their margin calls, thereby triggering bankruptcies of crypto-asset lending platforms. [42] Also, the insolvency of FTX was caused by lending out client funds to affiliated entities engaged in margin trading. [43]  3 Implications for the regulation of crypto-asset markets 3.1 Risks inherent in crypto-asset markets require preventive regulation.
Risks that are inherent in the traditional financial system are also inherent in crypto-asset markets. This requires appropriate regulation – regulation which does not unduly constrain innovation, but that ensures investor protection, financial market functioning, and financial stability. Providers of services in crypto-asset markets need to comply with basic standards – above all accounting standards.