This space needs to be properly regulated, otherwise there is the risk of financial crime, FSRA chief executive Richard Teng was quoted as saying by The National. Every time a coin gets stolen or lost, it affects the confidence in this asset class.
That quotation doesn't make much sense.
Regulation usually doesn't do anything to increase security. There are instances where regulation makes things worse. An example of this is governments pushing to weaken encryption standards. The regulatory push to standardize backdoors built into many software and hardware platforms is another example of regulation weakening security.
Government security standards also tend to be open to criticism. An example of this is Hillary Clinton's well known server containing classified information being located in a bathroom closet. The USA is known to have spent trillions of dollars developing stealth fighter planes and it is known that a good portion of data related to defense stealth programs was hacked and stolen by foreign nations, including china who used the information to develop their J-20 stealth fighter much quicker and easier than they otherwise would have.
If you look at security grades for government or state run institutions(in the USA), they never get top grades which would be an A+.
Instead, they typically get very low grades D's and F's.
The idea that regulating industries makes them more secure may be open to scrutiny.